Kremi reports after-tax profit of $54.6 millionWednesday, July 01, 2020
BY ABBION ROBINSON
CARIBBEAN Cream Limited (CCL), which trades as Kremi, posted on Friday last (June 26) after-tax profit of $54.6 million for the financial year which ended February 29, 2020, despite a 38.4 per cent decrease compared to the previous corresponding period.
This, according to Chairman Carol Clarke Webster, was due to a hike in commodity costs, driven primarily by increased prices worldwide and worsened by the fluctuating exchange rate against the United States dollar.
She, however, assured that the company is “well positioned to withstand the challenges that lie ahead due to the impact of the COVID-19 pandemic”.
“Caribbean Cream Limited has always been careful to put aside a large cash reserve for a company of this size, and this financial year is no different. At the end of the current financial year we had a little over $129 million in cash,” Clarke Webster stated in the report to shareholders.
Sales for the period under review went up by $153 million (or 10 per cent) to $1.7 billion, mainly due to increased product offerings made possible by the installation of a new line for stick-based, frozen novelties created in-house under the Kremi brand during the previous year. In addition, the opening of a new depot in the May Pen community also positively impacted overall sales.
For the financial year under review, the structure of the company was significantly changed as CCL entered into a shared service agreement with a related company, Scoops Unlimited Limited, which holds 78 per cent of shares in the company. Under this agreement, finance, marketing, human resources and information technology professional services are shared by both companies and will be centralised at one location.
This move is expected to reduce administrative costs and increase productivity by better utilising the working hours of the relevant personnel.
Other changes that were made include the appointment of Ryan Peralto as general manager of CCL during the fourth quarter of the year, and the appointment of Christopher Clarke as chairman of the board of directors. Clarke will also continue on in his role as CEO.
“It was an absolute honour and pleasure to serve as chairperson over the past seven years. Even though we head into an uncertain future, it is my hope that our shareholders, employees, customers, board members and management team will continue to display the resilience for which Jamaicans are known, as we work together as a people to rebuild our economy,” Clarke Webster stated.
She will also remain as a member of the board of directors.
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