Earnings Roundup: KREMI Rebounds, ONE and AMG Faces Headwinds

  • Recent earnings releases on the Jamaica Stock Exchange (JSE) revealed diverging earnings trajectories. Caribbean Cream Limited (KREMI) returned to profitability on stronger sales and operational efficiencies, One on One Educational Services Limited (ONE) delivered improved year-to-date margins; however, AMG Packaging & Paper Company Limited (AMG) faced production-related headwinds that weighed heavily on earnings.
  • KREMI’s net profits rebounded in its first quarter ended May 31, 2026. It reported net profits (NP) of J$44.65Mn relative to a net loss of J$13.65Mn in the corresponding prior year period. Revenues increased 10.2% year-over-year (YoY) to J$884.31Mn, supported by improved product availability across its distribution network following last year's disruptions. Consequently, gross profit (GP) climbed 31.3% to J$303.39Mn, with the GP margin expanding to 34.3% from 28.8%, benefiting from both higher sales volumes and lower maintenance costs as improved equipment reliability enhanced operational efficiency.
  • Earnings were also bolstered by relatively stable operating expenses, with KREMI's administrative and selling expenses largely flat at J$220.04Mn (0.06%). Consequently, operating profit (OP) surged more than sixfold to J$84.64Mn from J$11.61Mn in Q1 2025, resulting in the OP margin improving to 9.6% from 1.5%. Management also highlighted stronger liquidity, with cash balances rising 75% since year-end, aided by a temporary loan repayment moratorium granted following Hurricane Melissa.
  • In contrast, ONE reported a softer Q3, with NP declining 37.4% YoY to J$22.97Mn as revenues fell 4.8% to J$95.75Mn. A provisional inventory write-down increased direct costs by 33.7%, compressing the GP margin to 71.9% from 79.9%. Consequently, OP declined 28.3% to J$29.18Mn, with the OP margin narrowing to 30.5% from 40.5%. NP margin also fell to 23.9% from 36.5%.
  • Despite the quarterly setback, the company's nine-month performance remained resilient. Net profit increased 16.4% to J$64.13Mn despite revenues slipping 3.6%, reflecting disciplined cost management with direct costs declining 21.5%. Furthermore, for Q3, management continued investing in proprietary adaptive assessment technology, artificial intelligence, platform consolidation and product development while refining its subscription model for One Academy ahead of the new academic year.
  • For its part, AMG experienced a challenging Q3 as production disruptions associated with corrugator1 commissioning issues and the lingering effects of Hurricane Melissa constrained output. Q3 revenues declined 11.0% YoY to J$233.88Mn, while GP fell 25.1% to J$72.10Mn with GP margin contracting to 30.8% from 36.6%. Although total manufacturing costs declined 2.9% during the quarter, the reduction was insufficient to offset weaker sales volumes. Higher operating expenses (+11.5%) further eroded profitability, resulting in NP declining 57.5%. Consequently, the NP margin declined to 9.1% from 18.9%.
  • Over the nine months, AMG’s performance was also depressed as production constraints limited revenue generation. Net profit has declined 67.6% YoY to J$36.23Mn and net profit margin contracted to 5.6% from 14.6%. That said, the company remains focused on factory expansion and relocation initiatives, which are expected to alleviate current production constraints, improve capacity utilisation and support a recovery in earnings performance.
  • At market close on July 16th, KREMI, ONE and AMG have delivered mixed share price performances year-to-date, closing at J$1.66 (-20.8%), J$0.71 (-17.5%) and J$1.81 (-18.1%), respectively. At their current market prices, ONE and AMG trade at P/E multiples of 14.2x and 30.2x, compared with their respective sector averages of 25.3x (Junior Market Other) and 17.3x (Junior Market Manufacturing). Meanwhile, KREMI trades at a price-to-book (P/B) multiple of 0.76x, below the Junior Market Manufacturing sector average of 1.20x.

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1A corrugator machine is a large industrial machine used to make corrugated cardboard–the layered material commonly used for shipping boxes and packaging.

(Sources: JSE & NCBCM Research)