However, revenue climbed 22% to$1.26 billion

Durrant Pate/Contributor

Net profit at Jamaican ice cream and frozen novelties manufacturer, Caribbean Cream went down to J$8.51 million for the half year ended August 31, 2022, compared to the J$61.42 million for 2021.

Profit for the August quarter amounted to J$7.18 million, down from the J$7.27 million posted for the same period last year. Taxation year to date amounted to J$1.22 million, 86 per cent less compared to the $8.77 million charged for the corresponding period last year.

Caribbean Cream, which trades as KREMI notes that during the quarter, “large price increases in key raw materials were the main driver, in addition to an increased foreign exchange rate, and higher utility costs”. Costs of sales amounted to J$903.63 million (2021: J$673.76 million), representing an increase of 34 per cent year over year.

Administrative expenses rose by 15 per cent to close at J$285.64 million (2021: J$249.01 million), while selling and distribution costs increased by four per cent from J$30.48 million in 2021 to J$31.85 million in the period under review.

Jump in operating expenses

Operating jumped to J$345 million, an increase of J$54 million during the half year. The management says, “the increase was due to higher cost of utilities, security, cleaning and sanitisation, and loan financing. While our electricity consumption has remained flat, rate increases are driving up our cost, and almost weekly fuel price increases are driving up the cost of transportation and a wide range of our materials and services”.

Finance cost rose by 133 per cent year over year, amounting to J$27.41 million relative to J$11.74 million recorded for the first six months of 2021. Interest income declined to J$231,248 relative to the J$502,079 for 2021.

Revenues for the half year went up 22 per cent to J$1.26 billion compared to J$1.03 billion last year. Revenue for the second quarter rose 33 per cent to close at J$645.40 million compared to J$486.24 million for the comparable quarter of 2021.

KREMI’s total assets as at August 2022 amounted to J$1.78 billion (2021: J$1.36 billion), which is J$419.09 million more than its value as at August 2021. The increase in assets was largely due to an increase of J$467.79 million in ‘Property, Plant and equipment’ to a total of J$1.33 billion (2021: J$857.69 million).

Shareholders’ equity was J$807.01 million (2021: J$869.08 million), representing a book value per share of J$2.13 (2021: J$2.30).