Carreras rewards shareholders with generous dividendsWednesday, September 22, 2021
Cigarette distributor Carreras continues to pay out handsome dividends to its shareholders with a recent declaration to pay out $3.398 billion for the 2020-2021 financial year.
The company generated profit after tax of $3.738 billion versus $3.583 billion in 2019-2020, which represented an increase of 4.3 per cent. This marginal growth was mainly driven by decreased operating costs for the just-ended financial year versus the prior year.
As a result of this positive performance, Carreras delivered earnings per share of $0.77 for the just-ended financial year from the total dividend payout of $3.398 billion distributed for 2020-2021. The dividend for 2019-2020 was $0.73.
The ability of the organisation to deliver consistent shareholder value is rooted in its prioritisation of cutting-edge practices and reinvesting behind sustainable value-added programmes, which continue to yield great results.
Total assets at the end of the 2020/2021 financial year were $5.072 billion, compared to $4.231 billion in the prior year.
During the just-ended financial year, Carreras was able to capitalise on the benefits of route-to-market distribution network through significant decreases in related party costs, as well as the reinforcement of performance initiatives employed by management. These combined initiatives have steered Carreras's momentum in the right direction whilst remaining committed to investing in its most valuable assets — its people and brand portfolio.
Commenting on the performance, Carreras Chairman Oliver Holmes spoke about the support given to the legal market by the Government of Jamaica, particularly the Ministry of Finance and the Public Service, in the execution of its sustainable excise strategy. This strategy, he contends, “has produced notable growth at the expense of the rampant illicit trade, whose activities rob the Treasury of Jamaica of much-needed tax revenue”.
Holmes comments that, “While cigarette contraband continues to be available on the market, the carefully measured efforts of the Government have given traction to the globally proven idea that drastic excise increases and draconian regulation are the main enablers of smuggling and illicit market operations.” He argues that this is of timely consideration given any supplemental or national budget review and the draft tobacco control legislation currently on the table.
The Carreras chairman highlights the management's “unwavering resolve to continue the championing of fair and workable tax regimes alongside policies geared towards stemming illicit trade. Equity and fairness underpin our ongoing strategic focus”.
Holmes says in the current pandemic, the health, safety and job security of employees is of paramount importance to Carreras, noting that the company continues to maintain adherence to a full suite of safety protocols for front-line team as they transact business on the company's behalf.
In concluding he made the point that, “Opportunities are also being explored daily to expand and to boost our personnel complement as we fully appreciate our role in nation-building and the reliable provision of employment to a percentage of the Jamaican workforce.”
— Durrant Pate