Solid capital base showing significant growth in shareholders’ equity

Carreras Limited recorded strong growth in operating revenue of $7.19 billion for the second quarter ended September 30, 2021, which resulted in a 17 per cent increase when compared to the same period in 2020.

This was mainly attributable to the 18.5 per cent increase in volumes achieved for the quarter when compared to the same period last year. Profit before other income for the period under review  was $1.82 billion, $122 million higher than the second quarter of 2020, representing additional gains in operating margin.

Overheads remained relatively flat, totaling $999 million compared to $993 million in the corresponding period in 2020, which is a one per cent or $6-million increase. Net profit for the period was $1.90 billion, which was a 22 per cent increase compared to $1.5 billion in 2020.

The earning per stock unit for the period was 39.2 cents compared to 32.2 cents in 2020. Carreras reported a solid capital base that showed significant growth with total shareholders’ equity of $2.0 billion at the end of September 30, 2021 compared to $1.7 billion for the prior period in 2020.

The Board of Directors has approved an ordinary interim dividend payment of $0.21 per stock unit, totaling $1.01 billion, to be paid out of accumulated profits on December 16, 2021 to stockholders as shown on the Register of Members as at November 26, 2021. This is keeping with our dividend policy and demonstrates the company’s continued commitment to enhancing shareholder value.

Stronger route to market push

During the review period, Carreras continued to push its Route to Market itinerary for 2021, which includes but is not limited to increasing its carrying capacity and improving efficiency. This includes enhanced security measures as well as increased product availability as major areas of focus.

The management points out that, “although activations were dramatically scaled down, creative and safe ways were found to bring the brands to our consumers during this unprecedented time. This was highly appreciated by our consumers and trading partners who appreciated the commercial input during this period”.

The company recently launched a digital platform which allows it to engage with consumers in a safe space created for adult smokers.

However, the management has emphasised that, “the illicit trade continues to permeate our trading environment and the company has employed other strategic initiatives to counter the effect from these activities. One such initiative is the redesign of our route to market which allows us to be present in some areas with a high presence as well as to bring awareness of the issues to a greater audience”.

Carreras remarked that, “the multi-industry approach to tackle the illicit trade has been adopted by the company. This approach seeks to drive awareness, advocate for stricter border controls and legislative changes for imposition of stricter penalties and sanctions. We commend the efforts and support of the Jamaica Customs Agency and the Jamaica Constabulary Force, specifically, the Counter-Terrorism and Organised Crime Investigation Branch for their commitment to the fight against the illicit trade”.

The cigarette marketer said it continues to be committed to the fight against the spread of the COVID-19 and to ensuring that it delivers its goods to our customers in the safest way pointing out that all safety measures are being enforced and protocols adhered to.

Carreras said it was committed to achieving a First World, modernised portfolio through its continued transformation of its brands.

The Craven ‘A’ brand got a facelift with a bold and modern reimaging of the pack as well as Matterhorn with its “new look of freshness”.

According to Carreras, the brand continues to perform incredibly well within the marketplace and continues to be the leading, most sought-after brand.

On the matter of the Tobacco Control Act regulations now being debated in the Parliament, Carreras said it was “working assiduously to ensure that the regulations are balanced, practical and fair”.

The cigarette marketer added: “We are also committed to supporting and complying with such regulations set out for governing our marketing and distribution of our products.”