Durrant Pate/ Contributor

Caribbean Cream Limited has seen its third-quarter earnings seriously impaired by the passage of Hurricane Melissa last October and equipment maintenance.

In its just-released Q3 performance, ended November 30, 2025, Caribbean Cream experienced revenues dwindling to $578.9 million, down from $686.3 million a year ago. This performance highlights the very challenging past quarter encountered by the junior market listed company, which manufactures and sell ice cream and frozen novelties, under the ‘Kremi’ brand, and the importation and distribution of certain types of frozen novelties.

To ensure employees’ safety, Caribbean Cream had to close to the public for an entire week leading up to and after the passing of Melissa, with sales being severely affected due to the closure of distribution and depot operations. Sales were further worsened by the severe damage to the Montego Bay depot, which was unable to operate in November. However, sales gradually increased post-Melissa within the distribution and depot operations.  

Mobay depot reopens

The Mobay depot was reopened to the public on December 5, and sales have progressively been returning to pre-Melissa levels. The cost of sales for the nine months was $1.63 billion, an increase over the previous year, which was $1.45 billion, representing an increase of $186.45 million or 13%. Major sources of the higher costs were increased labour and waste disposal costs.

Cost management efforts resulted in Q3 costs being flat versus the same period in the previous year $497.4 million versus $498.5 million. Gross profit for the nine-month period amounted to $572.86 million, representing a decrease of $156.12 million, or 21%, compared to $728.99 million for the same period in the previous year. For the quarter, gross profit totalled $81.52 million, reflecting a decline of $106.28 million, or 57%, relative to the corresponding quarter of 2024.

Operating expenses for the nine months were $722.2 million, a slight year-over-year reduction of $7.4 million or 1% of the corresponding period last year. Quarterly expenses show a more significant reduction compared to the previous year, both in dollar and percentage terms.

For the quarter, expenses were $215.1 million or 7% lower than the $231.4 million in the corresponding quarter of 2024. This is an indication of ongoing efforts by management to further control and decrease administrative costs. Considering the preceding impact on operations, the company recorded a net loss before taxation of $144.97 million for the nine months ending November 30, 2025, and $99.28 million for the third quarter. 

Based on the current trajectory, the management team led by CEO Christopher Clarke and the board, chaired by Matthew Clarke, has undertaken to restore the company’s profitability.