Cigarette company, Carreras managed to stay profitable for its 2020/2021 financial year, which ended on March 31, 2021, in spite of the pandemic curtailment in business.

Net profit at the end of its 2020/2021 financial year increased by four per cent to $3.74 billion coming from $3.58 billion in 2020. This is after incurring taxes of $1.22 billion for the year.

For the March quarter, Carreras’ net profit closed a $1.14 billion compared to $1.13 billion reported in the same period last year. Profit before income tax for the year was recorded at $4.96 billion compared to $4.76 billion in the prior year.

Total comprehensive income climbed in 2020

For the fourth quarter in March, profit before income tax amounted to $1.478 billion compared to $1.48 billion posted in 2020. Total comprehensive income for the year ended March 31, 2021 amounted to $3.73 billion (2020: $3.54 billion).

Carreras Limited, for the year ended March 31, 2021, reported operating revenue of $13.97 billion, one per cent less than the $14.13 billion booked in 2020. Revenue for the quarter fell one per cent to $3.81 billion coming from $3.84 billion in 2020.

Cost of operating revenue increased year over year by 0.4 per cent, amounting to $7.16 billion from $7.13 billion recorded in the year prior. As such, gross operating profit for the year ended March 31, 2021 declined by 3% to total $6.81 billion (2020: $6.99 billion).

For the quarter, gross profit closed at $1.88 billion versus $1.91 billion reported in the prior comparable quarter. Other operating income for the year ended March 31, 2021, rose by nine per cent moving from $201.74 million in 2020 to $219.39 million in 2021.

For the quarter, other operating income closed at $174.65 million (2020: $173.38 million).

Big drop in expenses

Administrative, distribution and marketing expenses contracted by 16 per cent to total $1.99 billion (2020: $2.37 billion) for the year ended March 31, 2021. Impairment loss on trade receivables and employee benefits expense totalled $2.93 million (2020: $1.77 million) and $56.90 million (2020: $44.70 million), respectively.

Lease interest expense amounted to $20.58 million (2020: $16.79 million). Earnings per share for the year ended March 31, 2021 was $0.77 (2020: $0.74), while for the quarter, EPS amounted to $0.24 (2020: $0.23). Carreras closed the trading period on May 27, 2021 at $10.52 with a corresponding P/E ratio of 13.66 times.

Total assets amounted to $5.07 billion as at March 31, 2021, up from $4.23 billion reported in 2020. This was mainly due to an increase in ‘Accounts receivable’, and ‘Cash and cash equivalents’ which closed at $1.36 billion million (2020: $995.31 million) and $2.23 billion (2020: $2.02 billion), respectively.

Shareholders’ equity attributable to stockholders of parent amounted $2.10 billion (2020: $1.77 billion) with book value per share of $0.43 (2020: $0.37).