Durrant Pate/Contributor

Caribbean Cream Limited, which trades under the name KREMI, delivered much sweetness for shareholders during the combined three quarters ended November 30, 2023, as net profit surged by 229 per cent.  

Net profit for the nine months closed on J$35.93 million, up from the J$10.93 million posted for the comparative period in 2022. For the third quarter, net profit was J$25.62 million (2022: J$2.42 million).

Consequently, earnings per share (EPS) for the combined three quarters amounted to J$0.09 (2022: EPS: J$0.03), while the EPS for the third quarter totalled J$0.07 (2022: EPS: J$0.01). The twelve-month trailing EPS was J$0.14.

Notably, Kremi’s stock price closed the trading period at a price of J$3.90 with a corresponding P/E ratio of 28.33x. Pre-tax profit for the nine-month period amounted to J$46.63 million, representing a 273 per cent increase relative to J$12.49 million booked in the comparative period of 2022. 

Taxation for the nine months ended November 30, 2023, grew by 585 per cent to reach J$10.70 million (2022: J$1.56 million). Operating profit for the year-to-date totalled J$113.69 million, a 122 per cent increase relative to J$51.32 million reported in 2022. 

Revenue outturn

Kremi reported a three per cent increase in revenue of J$1.88 billion year-to-date compared to J$1.83 billion in the corresponding period last year. Revenue for the third quarter had a nine per cent increase to close at J$630.04 million compared to J$575.59 million for the comparable quarter of 2022.

Cost of sales amounted to J$1.25 billion (2022: J$1.31 billion), representing a decline of 4% year-over-year. Administrative expenses increased by 10 per cent to close at J$467.82 million (2022: J$423.73 million), while selling and distribution costs fell four per cent from J$50.91 million in 2022 to J$49.09 million in the period under review. 

As a result, total expenses for the nine months closed on J$516.91 million, a nine per cent increase relative to J$474.63 million reported in 2022. Net Finance cost totalled J$67.06 million, up 73 per cent from the corresponding period last year (2022: J$38.83 million).

Balance sheet highlights

Kremi’s assets totalled J$2.29 billion (2022: J$1.96 billion). The growth in total assets was primarily driven by a 23 per cent increase in ‘Property, Plant, & Equipment’ to J$1.73 billion (2022: J$1.41 billion).

Shareholder’s equity was J$861.54 million (2022: J$809.44 million), representing a book value per share of J$2.28 (2022: J$2.14).