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Cigarette seller Carreras sells JM$4 billion in smokes in Q3

Jamaican cigarette distributor Carreras Limited recorded a 10 per cent growth in revenues for the quarter ended December 2020, delivering JM$4.0 billion.

Net profit for the quarter topped JM$1.03 billion, compared to JM$704.1 million for the similar period in 2019.

“We continue to maintain focus on how we maximise the investments made in our business with appropriate management of our cost base”

— Raoul Glynn, managing director, Carreras Limited

Meanwhile, for the nine-month period to December, total revenues remained relatively unchanged at JM$10.16 billion when compared to JM$10.28 billion for the similar period in 2019.

Net profit for the period under review reached JM$2.59 billion, up from JM$2.44 billion for the similar period in 2019.

“This Q3 performance is building upon the recovery uptick, which commenced in Q2 post the initial impact of the COVID-19 pandemic on the supply chain. This success is the result of the efforts of a devoted team,” Managing Director Raoul Glynn stated in his report to shareholders.

Managing Director of Carreras Raoul Glynn (Photo: Jamaica Observer)

“The company’s Q3 performance went a long way in reducing the 1 per cent decline in the year-to-date (YTD) operating revenue of $10.159 billion, relative to the same period last year,” he added.

 Year-to-date pre-tax profit delivered JM$3.481 billion, which represents a 6.3 per cent increase versus the same period last year. 

Shareholders’ equity was JM$1.988 billion, a 41 per cent increase versus the same period last year. 

Managing expenses

“We continue to maintain focus on how we maximise the investments made in our business with appropriate management of our cost base. Consequently, there was a 20 per cent reduction in administrative, distribution and marketing expenses, which totalled JM$1.501 billion (2019: JM$1.876 billion) for the nine-month period ended December 31, 2020, compared to the prior year,” Glynn shared

 They also said that thecCompany was able to capitalise on benefits in the route-to-market distribution network through significant decreases in related party costs as well as the reinforcement of performance initiatives employed by management. 

The company will be paying an interim dividend of 21 cents per share or $1.019 billion to shareholders on March 18, 2021.