July 29, 2024

Caribbean Cream Limited (Kremi)

Audited financials for the year ended February 28, 2024:

Caribbean Cream Limited (Kremi) for the year ended February 28, 2024, reported a 5% increase in Revenue totaling $2.64 billion compared to $2.51 billion in the corresponding period last year. Revenue for the fourth quarter had a 13% increase to close at $762.68 million compared to $673.51 million for the comparable quarter of 2023.

Cost of Sales amounted to $1.72 billion (2023: $1.73 billion), this represents a decrease of 1% year over year. Consequently, gross profit increased by 19% to $923.61 million compared to $774.65 million for the year ended February 28, 2023. The company booked gross profit of $296.76 million for the fourth quarter versus $249.62 million reported for the similar quarter of 2023.

Administrative expenses increased by 20% to close at $716.46 million (2023: $597.53 million), while Selling and distribution costs increased by 4% from $71.79 million in 2023 to $74.59 million in the period under review. As a result, total expenses for the year ended February 28, 2024, amounted to $791.05 million, a 18% increase relative to $669.31 million reported in 2023.

Operating Profit for the year ended February 28, 2024, amounted to $133.22 million, a 25% increase relative to $106.32 million reported in 2023. Operating Profit for the fourth quarter amounted to $19.53 million (2023: $55.00 million).

Finance costs totalled $83.15 million a 26% increase from the corresponding period last year. (2023: $65.92 million).

Profit before taxation for the year ended February 28, 2024, amounted to $48.21 million, a 15% increase relative to $41.84 million reported in 2023. Profit before taxation for the fourth quarter amounted to $1.58 million (2023: $29.35 million).

Taxation for the year ended February 28, 2024, had a 22% increase to reach $11.47 million (2023: $14.73 million). As such, Net Profit for the year amounted to $36.74 million, a 36% increase from the $27.11 million reported in 2023. For the fourth quarter, Net Profit was $812,791 (2023: $16.18 million).

Consequently, Earnings Per Share for the year amounted to $0.10 (2023: EPS: $0.07), while Earnings Per Share for the quarter totaled $0.002 (2023: EPS: $0.04). The twelve-month trailing EPS was $0.10 and the number of shares used in these calculations was 378,568,115.

Notably, Kremi’s stock price closed the trading period on July 26, 2024, at a price of $3.41 with a corresponding P/E ratio of 35.14x.

Balance Sheet Highlights

The company’s assets totalled $2.52 billion (2023: $2.15 billion). The growth in total assets was primarily driven by a $213.24 million or 14% increase in ‘Property, Plant & Equipment’ to $1.76 billion (2023: $1.55 billion). Also, ‘Cash and cash equivalents’ grew by $73.67 million from $66.80 million in 2023 to $140.46 million in the period under review.

Shareholder’s equity was $862.36 million (2023: $825.62 million), representing a book value per share of $2.28 (2023: $2.18).

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