Caribbean Cream Profit takes a Nosedive

  • In the most recent financials published for Caribbean Cream Limited (KREMI), the company reported an overall decline in the net profit for the three-month period ended May 31, 2019. Net profit ended the period at $20.62Mn (EPS: $0.05) which was a 62.7% decline from the $55.37Mn (EPS: $0.15) reported in 2018.
  • An increase in administrative, selling & distribution expenses and net finance costs, as well as a decline in overall income, were contributors to the deterioration in the net profit. Admin expenses increased to $106.59Mn, 19.6% higher than in 2018 and net finance costs increased to $6.06Mn (or by 79.2%). Revenues also declined to $135.62Mn (-7.8%).
  • The stock has fallen 13.9% since the start of the calendar year. KREMI closed yesterday’s trading session at $5.01 and currently trades at a P/E of 41.9x earnings which is below the Junior Market Manufacturing sector average of 28.8x.

 (Source: Caribbean Cream Financials)