Kremi profit melts
Published:Thursday | February 22, 2018 | 12:00 AM
Caribbean Cream Limited, which trades as Kremi, continued to grow its revenues by double-digit levels but expenses are hampering its bottom line.
The company avoided price increases, which slashed its profit.
"Revenue and market share growth have been achieved by maintaining retail prices despite increasing costs. This impacted profitability," said CEO Christopher Clarke and director Wayne Wray in the preface to the financials.
The ice cream company made net profit of $653,000 for the third quarter ending November 2017, down 97 per cent year on year. Revenue rose 18 per cent to $319 million.
Over nine months, Kremi earned $992 million in revenues, up 12 per cent, but expenses grew 27 per cent, leading to a fall in profit to $71.15 million a reduction of 48 per cent.
"Costs for the period continued to increase due to escalating commodity prices of some ingredients," said the directors.