For the six months ended August 31, 2020, Caribbean Cream Limited (Kremi) saw increased sales of its flagship ice cream lines.
Revenue for the half-year was JM$891 million — or JM$51 million more than in the same period in 2019. For the quarter ended August, Kremi’s revenue reached JM$461 million, an increase of JM$39 million, or nine per cent over the same period in 2019.
Net profit was J$74 million for the six months compared to JM$35.3 million in 2019.
For the August quarter, net profit was JM$46 million, compared to $14.7 million in the same period last year.
Higher revenues were attributed to volume increases in key higher volume SKUs, management stated in remarks attached to the unaudited results. Furthermore, the company said sales for the quarter were good, despite shorter operating hours caused by the restrictive curfew hours, which were expected to limit sales.
“However, we were able to sell more within the limited hours of operation,” it was stated.
The company therefore showed growth despite the conditions in the country caused by the spread of the COVID-19 virus.
Management also said that considering the uncertain environment, the objective has been to cut costs where necessary while continuing the sales thrust of “getting closer to the final consumer and ensuring that all the [Jamaican] Government’s health protocols are followed”.
Cost of operations within the half-year grew to JM$582 million, a year-over-year increase of two per cent or JM$10 million. For the quarter, operation cost was JM$290 million, an increase of $1.4 million, due to higher importation charges resulting from increased imported novelties.
“Costs naturally went up because of increased import volume in key SKUs,” Kremi’s management said.
“We were able to keep raw material costs tight due to good supplier contract negotiations, amidst higher foreign exchange rates. We also held payroll costs despite COVID-19,” it continued
The company ended the six month period with total assets, less liabilities, of JM$1.063 billion, which was JM$188 million or 22 per cent more than the six months to August 31, 2019.
Management said the company’s cash position remained liquid. Cash at the end of the period was JM$151.5 million compared to JM$58 million on August 31, 2019.