Pandemic comfort food boosts Kremi profit, salesWednesday, August 04, 2021
With curfew and lockdown measures implemented to curb the spread of the novel coronavirus, Caribbean Cream Limited (CCL), which trades under the name Kremi, says the demand for comfort food grew beyond its expectation, resulting in significant increase in sales and profit.
The ice cream and frozen novelties manufacturer indicated that based on the increase in at-home consumption, it launched a new one gallon tub of ice cream in multiple flavours, targeted at the modern trade, in the fourth quarter of the financial year ended February 28,2020.
For the period under review, CCL achieved net profit of $100.7 million, an 84.5 per cent increase over the previous corresponding period, which recorded $54.6 million.
Sales revenue for the year also grew by $164 million or 10 per cent, to $1.9 million, up from the $1.7 billion recorded in the previous year.
According to CEO Christopher Clarke, CCL was able to increase sales during the pandemic due to its distribution model that delivers products directly to neighbourhoods and communities.
“The Kremi business model, where 'fudgies' sell our products from their motor bikes in communities off the beaten track, proved to be a major contributor to our sustainability as we were able to respond immediately to the demands for delivery of ice cream and novelties directly to our customers' doors,” he stated in the company's report to shareholders.
“During that time also, we were fortunate to have avoided any disruptions in our production levels or supplies schedule, due to good planning, sacrifice and some luck,” he continued.
Amid the uncertainties, in late September, CCL opened a new depot in Ocho Rios to increase its reach in the north coast town and the immediate surroundings.
Additionally, the company made strides in its US$2-million liquefied natural gas (LNG)-powered plant project. Aimed at reducing the CCL's carbon footprint, the LNG plant is being built to power Caribbean Cream ice cream-making operations in Kingston and is being executed in collaboration with Power Factor Technologies, a power engineering services company.
Total administrative and selling and distribution expenses for the financial year under review were $488 million, an increase of $25 million or five per cent over the previous year's expense of $464 million. The main contributors, CCL said were utilities and professional fees.
CCL however added that it continues the initiative of improving operational efficiencies, which includes the new Ocho Rios depot for greater sales revenue and outsourcing some of its workforce.
— Abbion Robinson
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