Profit more than doubled at Caribbean Cream

Revenues jumped an impressive 26 percent to $764 million at Caribbean Cream, for the first quarter to May this year, from a year ago when there was no growth in revenues. The latest figures are in line with revenues for the fourth quarter of the just concluded fiscal year to February.
Profit after tax more than doubled to $15 million from just $7 million last year and almost tripled before tax to $20.4 million. The first quarter net profit represents 43 percent of 2024 full year earnings of $37 million, this points to the potential for increased profits for the current year. Also of import, is data showing, the second and fourth quarters account for 7 percent and 11 percent more sales revenues than the immediately preceding quarters, resulting in around $55 million and $85 million in sales, respectively.
Other income moved from just over $1 million in 2023 to a loss of $3 million this year.
Gross profit margin in the first quarter rose to 35 percent from 30.7 percent in 2023 as input cost climbed vastly slower than sales growth, at 19 percent to $97 million from $418 million in 2023. The effect, operating profit surged 43.5 percent in the quarter to $267 million from $186 million.
Administrative expenses jumped 34.4 percent to $198 million in the quarter from $148 million in 2023. Sales and distribution expenses surged 58 percent to $22 million from $14 million in the prior year. Finance costs increased to $23 million in the quarter from $18 million in 2023. Taxation climbed from $956,677 to $5.11 million.
Current assets ended the period at $485 billion including trade and other receivables of $184 million, cash and bank balances of $97 million. Current liabilities ended the period at $331 million. Net current assets ended the period at $154 million.
At the end of May, shareholders’ equity amounts to $878 million with long term borrowings at $1.1 billion and short term at $108 million. The increased borrowing was used in financing the increased fixed asset that now is on the books at $1.74 billion and is up from $825 million at the end of February 2021.
Earnings per share for the quarter was 4 cents. IC Insider.com computation projects earnings of 70 cents per share for the fiscal year ending February 2025, with a PE of 5 times the current year’s earnings based on the price of $3.45 the stock traded at on the Jamaica Stock Exchange Junior Market. Net asset value ended the period at $2.32 with the stock selling at 1.50 time book value.