CARIBBEAN Cream Limited (CCL), manufacturer of Kremi ice cream and frozen novelties, returned to profitability in the first quarter as stronger sales, improved product availability and tighter cost controls helped it recover from a difficult financial year marred by Hurricane Melissa and rising global input costs.

For the three months ended May 31, 2026, the company posted a net profit of $44.6 million, reversing a $13.6-million loss in the corresponding quarter last year. Its latest performance follows a difficult 2025/26 financial year in which CCL generated slightly lower revenue of $2.97 billion and a net loss of $95.8 million.

Following a number of cost containment and operational efficiencies, revenue earned during the first quarter, however, increased to $884.3 million — $82 million or 10 per cent more than that of the same period last year.

“The increase was primarily attributable to the consistent availability of products across the distribution network,” the company’s directors said in their quarterly report to shareholders.

Gross profit rose even more sharply, increasing 31 per cent to total $303 million from $231 million in the corresponding period of the prior year. That lifted CCL’s gross margin from approximately 28.8 per cent to 34.3 per cent. The company also reported improvements in its operations.

“The reduction in maintenance costs reflects improved equipment reliability and operational efficiency, enabling the company to better meet customer demand,” the directors said.

Cost controls also supported the improved performance, as operating expenses remain controlled falling by about two per cent to close at $245 million. This along with a combination of disciplined spending, stronger gross margins and higher revenue enabled the company to return to profitability despite lingering pressures on the business.

During the quarter, the ice cream maker also improved its liquidity as its cash balances rose 74 per cent to $50 million when compared to $28.8 million at the end of the last financial year.

“The company’s financial position continues to demonstrate its ability to meet both its short-term obligations and long-term debt commitments as they fall due,” the directors noted.

To support its recovery from Hurricane Melissa last October, CIBC Caribbean Bank (Jamaica) granted CCL a temporary moratorium on principal loan repayments during the quarter. The company said the relief significantly supported its liquidity as it recovered from the Category 5 hurricane.

The improved first-quarter results come despite ongoing cost pressures. In June, the company increased prices across parts of its product portfolio after surging global milk powder prices and higher freight costs linked to the conflict in the Middle East raised its input costs.

Despite those headwinds, the company said it remains focused on improving its performance for the remainder of the financial year.

“Caribbean Cream Ltd remains committed to delivering stronger financial performance and enhanced returns for our shareholders, and we continue to execute initiatives aimed at achieving this objective,” the report signed by Chairman Matthew Clarke and CEO Christopher Clarke further stated.