In 2013, revenues at cigarette company, Carreras, plummeted from $3.1 billion in June 2012 quarter to just $2.155 billion, a sharp 30 percent drop. IC Insider in reporting on the company’s performance last year, stated “that is not all coming from the recently announced smoking ban.
Profit after tax fared even worse than the fall in revenues, dipping by 40 percent. The interesting development, is that gross margin improved to 100 percent from 90 percent, similar quarter in 2012 and 86.5 percent for all of the 2013 fiscal year. Price increase earlier this year (2013) clearly had a negative impact with the company’s customers, and seemed to have taken a big bite out of sales. A look at sales in 2012, showed a big jump in the last half of the year, coming into the March quarter this year (2013), suggesting that distributors where stocking up on the product, in anticipation of price increase and stopped stock piling once the price adjustment was implemented, as such the fall off in sales may not be as bad as it appears on the surface”.
The company’s first quarter results for 2014, show a marked improvement over 2013, sale have recovered by 20 percent over the poor June quarter, last year, to hit $2.59 billion. Volumes are clearly down but not as bad as they were last year. Gross profit climbed by 15.6 percent to $1.257 billion and profit after tax ended at $589 million from $485 million, in 2013. Gross profit margin fell to 94 percent in the latest quarter from 100 percent last year.
The tax rate has been reduced to 25 percent thus helping more than normal with the after tax profit gain. Distribution cost fell from $207 million to $185 million but administrative cost was up, from $320 million to $372 million.
Carreras had cash funds of $3.3 billion at the end of June this year and tax recoverable of $870 million. They are also to recover interest on the taxes the government is to refund them for. The latest results points to earnings in excess of $5 per share for the current financial year.
20% revenue hike pumps up profit at Carreras
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[…] fell. Gains| Stocks gaining with last traded prices, at the end of trading in the main market are, Carreras with 105,570 shares trading, rose 16 cents to $34.50, Caribbean Cement with 1,500 shares, closed 7 […]
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[…] Gains| Stocks gaining with last traded prices, at the end of trading in the main market are, Carreras with 11,270 shares changing hands, 15 cents higher at $34.65, Hardware & Lumber 1,102 units […]
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[…] the main market are, Caribbean Cement with 72,884 shares, the price lost 4 cents to end at $2.36, Carreras traded just 33,415 units with an 8 cents loss to $34.52, Grace Kennedy with 4,929 shares, closed […]
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[…] The last traded prices of stocks with losses at the end of trading in the main market are, Carreras in trading just 154 shares lost 3 cents to end at $34.60, Kingston Wharves closed with 38,664 […]
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[…] at 79,058.15. Gains| Stocks closing with gains at their last traded price, in the main market are, Carreras with 26,708 ordinary shares trading, 5 cents higher to $34.40, Pan Jamaican Investment had 1,000 […]
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[…] are Caribbean Cement with only 1,000 shares traded, to close with an 18 cents rise to $2.40, Carreras with 168,403 shares, to close with a gain of 10 cents at $34.90, Mayberry Investments gained 5 […]
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[…] volume and last traded prices of stocks with gains, at the end of trading in the main market, are, Carreras with 10,588 units changing hands, gaining of 50 cents to $35, Grace Kennedy with 135,968 shares to […]
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[…] volume and last traded prices of stocks with losses at the end of trading in the main market, are Carreras with 127,254 shares and lost 41 cents to end at $34.50, Mayberry Investments with 14,279 shares, […]
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