Kremi profit up 40%

Kremi profit jumped 184% in the February quarter over that of 2014.

Kremi profit jumped 184% in the February quarter over that of 2014.

Caribbean Cream (Kremi) reported a 40 percent jump in profits for the full year to February of $49 million or 13 cents per shares and a 184 percent jump to 5 cents per share for the quarter for an impressive $18 million. Kremi reported $34 million profit for the twelve months to February 2014 and $6.3 million in 2014, February quarter.
Revenue increased 11 percent for the February 2014 quarter, reaching $274 million but most of that is due to price increase and 19 percent to $1 billion for the twelve months.
Gross profit margin climbed to 28.44 percent in the latest quarter from 25.9 percent in the 2014 period but for the full year, the margin was at 27.59 percent compared to 23.67 percent for the 2014 period. Going forward, the margin should improve even more with the blast freezer installed in November, which management says will reduce utility cost and create capacity for greater production to enhance sales volume.
Kremi ice contAdministrative cost rose by 37.7 percent to $168.8 million for the full year and by 6.9 percent to $44.5 million for the quarter. The slower growth in the latest quarter is an indication that cost increase in the area is normalising and that is a god sign going forward. The company should also benefit from lower marketing cost in 2015 with the upfront cost for the rebranding and advertising picked up last year repeating in the current year. The last quarter reflects the lower on going marketing cost at just $6 million compared to $11.4 million in 2014 and $37.8 million for the full year versus $27 million in 2014. Finance cost in the quarter jumped to $10 million from $4 million in the prior year and an average of just over $5 million in the prior quarters. Based on the funds borrowed the cost going forward should be around $5 million per quarter subject to repayments and changes in interest rates if any.
Going forward the benefits of blast freezer will be reflected for the full year, while it only partially impacted the last quarter of the just concluded fiscal year. They increased prices around 15 percent ahead of the Christmas period and may have seen some cut back in volume in the quarter as a result. They should be able to recover volumes going forward and even expand on it as the shock effect of the price increase wears off and more retail outlets are added.
Importantly, electricity cost will fall from two standpoints one is the lower electricity cost around 20 percent from the peak last year and lower cost due to the faster freezing of ice cream thus using less energy. The cost of milk or milk powder is down quite sharply as well. With all of the above earnings of 2015/16 could land at 60 cents.

About IC Insider.com

Trackbacks

  1. […] Caribbean Creams profit upgraded to show a 62 percent increase to $56.8 million or 15 cents per share above the 2014 earnings, according the audited financial statements compiled by KPMG, the company’s new auditors. The comparative 2014 results were $35 million after a small tax expense. The interim report had profit for the year at $49 million on slightly higher sales than the audit report showed. The major area of change was lower administrative cost of $12 million in the audited accounts versus the preliminary figures. IC Insider is forecasting profit of 244 million for the 2016 fiscal year or 65 cents per share from increased sales revenues that will flow mainly from a 15 percent price increase effected just before the Christmas season. The stock which is listed on the junior market of the Jamaica Stock Exchange traded at $1.10 on Thursday and has moved up from 65 cents just before the release of the interim results. […]

  2. […] that had no stocks being offered for sale. The other stocks trading in the junior market are, Caribbean Cream with 200,000 shares changing hands to close unchanged at $1.10, Caribbean Flavours & Fragrances […]

  3. […] 6 securities that had no stocks being offered for sale. Stocks trading in the junior market are, Caribbean Cream finishing with 8,500 units to close with a gain of 1 cent at $1.20 but ended with the offer at […]

  4. […] are, Access Financial ending with 3,540 shares changing hands, to close lower by 2 cents at $17, Caribbean Cream closed with 100 shares trading at $1.19 to gain 14 cents, but ended with an offer of 120,000 shares […]

  5. […] 8 securities that had no stocks being offered for sale. Stocks trading in the junior market are, Caribbean Cream jumped 15 cents or 14.29 percent to close at a new 52 weeks’ high $1.20 with 232,000 units […]

  6. […] trading in the junior market are, Cargo Handlers having 10,000 shares trading to close at $22.08, Caribbean Cream closed with 1,495,613 shares trading at $1.05, Caribbean Producers with 147,200 shares trading at […]

  7. […] offered for sale. Bids are building for some of the junior market stocks, included in this list are Caribbean Cream with 194,000 units at 75 cents and below 6,535,715 units between 70 and 71 cents, Blue Power with […]

  8. […] 11 securities that had no stocks being offered for sale. Stocks trading in the junior market are, Caribbean Cream in only one trade ending with 2,500,000 units changing hands for 10 cents higher at 75 cents. […]

  9. […] that was at $2.50 up to Thursday. The bid is now back at $2.26 the last price the stock traded at Caribbean Cream closed with the bid for 73,530 shares at 68 cents 3 cents higher than the last price of 65 cents. […]

  10. […] 10 securities that had no stocks being offered for sale. Stocks trading in the junior market are, Caribbean Cream trading 25,055 shares at 65 cents as the price rose by 5 cents. Caribbean Flavours had 10,968 units […]

  11. […] market are, Access Financial Services traded 200 shares at $13.21, as the price eased 1 cent, Caribbean Cream closed trading with 10,000 shares, to end with a 5 cents decline at a new low of 60 cents. The stock […]

  12. […] trading Caribbean Cream attempted to trade at 76 cents in response to the 40 percent jump in full year results, but the […]