Carreras grew profit by 27% in the fiscal year to March.
According to the last audited financials to March this year, Carreras will contribute $7 billion in taxes to the government of Jamaica coffers, excluding payroll taxes.
For the current fiscal year, the company is expected to contribute in excess of a billion more in taxes as government increased taxes on cigarettes earlier this year and profit grows thus contributing more in profit tax. The cigarette distributors paid 15 percent more in Special Consumption Tax during the fiscal year, than the year before, with $5.9 billion being paid while operating revenues grew 12.8 percent to $13.5 billion.
The financial results to March show profit for the year rising 27 percent to $3.8 billion or $7.84 per share with earnings versus $6.20 in 2016. Carreras incurred $1.2 billion in corporate taxes. In achieving the improved results the company not only increased revenues net of consumption taxes but cut operating cost as well. Administrative cost fell from 1.21 billion to $1.07 billion, as staff cost fell from $211 million down to $163 million and Business support services cost declined from $386 million to $302 million. Distribution cost from $723 million to $622 million as $81 restructuring cost incurred in 2016 was eliminated in 2017. Occupancy cost fell from $56 million to $45 million Security fell from $74 million to $57 million and other expenses declined by $23 million to just $4 million. Staff cost rose from $316 million to $332 million.
Cash funds stood at $2.58 billion compared to $2.6 billion in 2016 and shareholders’ equity at $2.1 billion. IC Insider.com is forecasting profit for the year to March 2018 of $4.4 billion with earnings per share of $9.
Dividends paid during the year to March 2017 amounted to $3.45 billion or 91 percent of profit. The stock traded at $84 on Tuesday on the Jamaica Stock Exchange.
