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JM | Nov 29, 2021

Carreras reports 22% increase in six months net profit

/ Our Today

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18.5% increase in volumes achieved for the quarter when compared to same period

The offices of Carreras Ltd.

Jamaican listed cigarette marketer, Carreras is reporting a 22 per cent rise in net profits for the six months ended September 2021.

Net profit year to date rose to $1.90 billion relative to $1.56 billion booked in 2020. Net profit for September closed at $1.04 billion, up 14 per cent from the $910.63 million booked for the similar quarter of 2020.

Profit from operation amounted to $2.54 billion for the period under review compared to the 2020 out-turn of $2.08 billion for the comparable period in 2020. Profit from operation for the September quarter reflected a 15 per cent growth to $1.40 billion compared to $1.22 billion reported as at September 2020.

Carreras experienced a 17 per cent growth in revenue amounting to $7.19 billion relative to $6.15 billion booked in 2020. Revenue for the second quarter inched up nine per cent to $3.76 billion compared to $3.46 billion in 2020.

Carreras attributes this year-to-date growth mainly to the 18.5 per cent increase in volumes achieved for the quarter when compared to same period last year.

Modest rise in operating revenue

Operating revenue increased year over year by 19 per cent amounting to $3.72 billion, up from $3.13 billion booked 12 months earlier. As such, gross operating profit rose by 15 per cent to total $3.47 billion relative to the $3.03 billion in 2020.

Gross operating profit for the September quarter improved seven per cent to $1.82 billion coming from $1.70 billion in 2020. Other operating income rose by 62 per cent moving from $44.51 million in 2020 to 71.91 million for the period under review.

Administrative, distribution and marketing expenses remained relatively flat at $999.19 million. Impairment loss on trade receivables amounted to $289,000 relative to the gain of $6.64 million for the period ended September 30, 2020.

Total assets amounted to $4.51 billion as at September 30, 2021, up from $4.29 billion reported in 2020. This was mainly due to an increase in ‘Accounts receivable’ totalling $1.77 billion (2020: $1.26 billion). The overall movement was tempered by a decline in ‘Cash and cash equivalents’ which amounted to $1.12 billion (2020: $1.78 billion).

In its report to shareholders the management says, “the company is committed to achieving a first world modernized portfolio through its continued transformation of its brands. Our beloved Craven ‘A’ got a facelift with a bold and modern reimaging of the pack as well as Matterhorn with its “new look of freshness”.

Incredibly well performance within the marketplace

Carreras continues to perform incredibly well within the marketplace and continues to be the leading sought-after brand. In addition, the cigarette marketer continues to push its route-to-market itinerary for 2021, which includes but is not limited to increasing our carrying capacity and improving efficiency. Enhanced security measures as well as increased product availability are also major areas of focus.

Although activations were dramatically scaled down, Carreras says 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.

During the half year in review, Carreras also launched a digital platform, which allows us to engage with our consumers in a safe space created for our adult smokers.  

According to Carreras, “the company continues to be committed to the fight against the spread of the COVID-19 and to ensuring that we deliver our goods to our customers in the safest way”.

Said Carreras: “Our main priority is the protection of our people’s health and employment. All safety measures are being enforced, and protocols adhered to. Carreras continues to provide full employment and benefits to all team members and will continue to do this as we seek to efficiently manage our resources.”

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