10% increase in revenue to end the year at $1.87 billion

Caribbean Cream Limited is reporting a big jump in net profits for 2020-2021, surpassing $100 million.

Caribbean Cream, which trades under the name KREMI, ended its financial year in February incurring taxes of $17.82 million, which more than doubled the $7.60 million recorded in the previous financial year in 2019-2020. For the year under review, net profit rose by 85 per cent from $54.57 million reported in 2019-2020 to $100.68 million for the period under review.

Profit for the last quarter amounted to $15.62 million, which was a slight increase over the profit of $11.16 million in 2019-2020. Gross profit improved by 15 per cent or $79.53 million to $625.14 million for the period under review compared to $545.61 million for the year ended February 28, 2020.

The company booked gross profit of $172.55 million for the fourth quarter versus $151.71 million reported for the similar quarter of 2020.

Marginal improvement in revenues

Caribbean Cream registered a 10 per cent increase in revenue to total $1.87 billion compared to $1.71 billion booked last year. Revenue for the fourth quarter rose 14 per cent to close at $537.96 million compared to $470.92 million for the comparable quarter of 2020.

Costs of sales amounted to $1.25 billion (2020: $1.16 billion), an increase of seven per cent year over year, while for the quarter there was a 14 per cent growth to $365.41 million (2020: $319.21 million). Administrative expenses climbed eight per cent to close at $427.86 million (2020: $395.32 million), while selling and distribution costs fell by 11 per cent from $68.30 million in 2020 to $60.66 million.

Operating profit for the year amounted to $138.43 million, up 70 per cent relative to $81.31 million booked in 2020. Operating profit for the quarter amounted to $29.20 million (2020: $16.49 million). In addition, finance cost rose five per cent year over year to $21.26 million relative to $20.27 million recorded in 2020.

Furthermore, the company reported an 18 per cent increase in interest income for the year from $1.13 million reported in 2020 to $1.33 million for the year ended February 28, 2021.

Balance Sheet Highlights

The company’s assets totalled $1.39 billion (2020: $1.17 billion). The movement was largely due to an increase of $88.09 million in ‘Cash and Cash Equivalents’ to a total of $217.28 million (2020: $129.20 million).

Additionally, ‘Property, Plant and equipment, closed at $825.48 million relative to $773.14 million reported in 2020. Shareholders’ equity amounted to $833.93 million (2020: $744.23 million), representing a book value per share of $2.20 (2020: $1.97).