Net profit climbed by $36.27 million

Jamaican ice cream and frozen novelties manufacturer, Caribbean Cream Limited is reporting a 15 per cent jump in revenues for the nine months ended November 30, 2021.

Caribbean Cream, which trades under the name KREMI, reported revenue of J$1.54 billion for the three quarters under review compared to J$1.33 billion in the corresponding period 2020. Revenue for the third quarter in November rose 14 per cent to close at $500.51 million compared to $440.83 million for the comparable quarter of 2020.

KREMI highlighted that their recently opened Ocho Rios depot was the force driving revenue, contributing eight per cent to overall sales. Costs of sales amounted to J$1.05 billion coming from J$879.64 million in 2020, representing an increase of 19 per cent, while for the quarter there was a 26 per cent growth to J$375.67 million during the period under review coming from the J$297.91 million posted in 2020.

According to the company, this was driven by increases in the cost for logistics, raw material and imported novelties. Nonetheless, gross profit improved by seven per cent or J$33.18 million to J$485.78 million compared to J$452.59 million reported twelve months earlier.

The company’s gross profit for the quarter dipped by $18.07 million, standing at $124.84 million versus $142.92 million reported for the same quarter in 2020.

Rising admin expenses

Administrative expenses climbed 26 per cent to close at J$378.06 million, up from $300.01 million in 2020, while selling and distribution costs rose by eight per cent from J$43.35 million in 2020 to J$46.94 million for the period under review. The increase in administrative costs was influenced by staff and related expenses for transportation during lockdowns, increased costs in electricity due to higher throughput and costs attributable to requiring above average levels sanitation.

Operating profit for the nine months period amounted to J$60.77 million, a decrease of 44 per cent relative to J$109.23 million booked in 2020. Finance cost rose 52 per cent year over year to amount to J$19.89 million relative to the J$13.10 million recorded in the nine months ended November 30, 2020.

KREMI reported a 47 per cent decrease in interest income for the period from J$1.07 million reported in 2020 to J$572,402 for the nine months ended November 2021. After incurring taxes of J$5.18 million (2020: J$12.15 million) for the period under review, net profit attributable to shareholders decreased by 57 per cent from J$85.06 million booked in 2020 to J$36.27 million for the nine months ended November 30, 2021. 

KREMI reported a loss for the quarter amounting to J$25.15 million (2020: net profit of J$11.01 million). The company’s assets totalled J$1.62 billion (2020: J$1.20 billion), J$454.55 million more than its value as at November 30, 2020.

The increase in assets was largely due to an increase of J$158.78 million in ‘Cash & Cash Equivalents’ to a total of J$226.61 million (2020: J$67.83 million) and ‘Property, Plant & Equipment’ which increased by 27 per cent to total J$1.01 billion (2020: J$795.16 million). ‘

Shareholders’ equity amounted to J$843.93 million (2020: J$818.31 million), representing a book value per share of $2.23 (2020: $2.16).