$74-million six-month profit for Kremi

$74-million six-month profit for Kremi

BY ABBION ROBINSON
Business reporter
robinsona@jamaicaobserver.co

Sunday, October 18, 2020

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CARIBBEAN Cream Limited (CCL), which trades as Kremi, posted on Thursday (Oct 15) an unaudited after-tax profit of $74.05 million for the six-month period ended August 31, 2020, up from the $35.32 million recorded in the previous corresponding period.

Revenue for the period under review amounted to $891 million, an increase of $51 million or 6 per cent over the previous corresponding period, while operating revenue cost was $582 million, an increase of $10 million or 2 per cent.

Operating expenses were $226 million, which represented a reduction of $5 million or 2 per cent below the previous corresponding period.

Chairman Christopher Clarke, in reporting to shareholders, indicated that the company's performance for the half-year showed growth despite the impacts of the COVID-19 pandemic faced by the country.

“Considering the uncertain economic environment, the objective was to contain costs where necessary whilst continuing the sales thrust of getting closer to the final consumer and ensuring that all the Government's health protocols are followed,” Clarke said.

“We are fortunate that, unlike many other companies, demand remained high for our products, and our 'fudgies', depots and mid-level customers rose to the occasion. Our staff remained dedicated to the job and made every effort to keep operations going despite the isolation and fears that have accompanied this pandemic. This Jamaican resilience is key to our company's performance in this time of uncertainty,” he continued.

He added that the company,however, faced difficulties with recruitment of needed line personnel.

CCL also recorded an after-tax profit of $46.99 million for the quarter ended August 31, 2020 – up from the $14.70 million recorded in the previous corresponding quarter.

Revenue for quarter under review was $461 million, an increase of $39 million or 9 per cent above the previous corresponding quarter.

However, operating revenue cost was $290 million, an increase of $1.4 million due to the higher importation charges resulting from increased imported novelties. Clarke further indicated that that the company was able to keep raw material costs down because of good supply contract negotiations amidst higher foreign exchange rates.

Administrative expenses grew by $3.7 million or 4 per cent due to increased depreciation costs and International Financial Reporting Standards 16.

At the end of the period earnings per stock stood at $0.12, up from the $0.04 recorded in the previous corresponding period.


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