Kremi nearly triples profit
Caribbean Cream Limited, which trades as Kremi, sold $1.13 billion worth of ice cream products last year to improve its turnover by 12 per cent, or $122 million.
The company attributed its revenue growth to ongoing sales and marketing efforts amid continued expansion of its wholesale and retail market segments.
The Junior Market company also closed the year with profits of $151 million, or 40 cents per share, at year end February 2016, almost tripling its performance relative to FY 2015 when profits amounted to $57 million, or 15 cents per share.
Most of the gains stemmed from a reduction in its cost of business, which fell by $53 million to $685 million.
Sales and distribution costs, however, increased by 12 per cent to $42.7 million, a reflection of the continued drive to increased market presence.
"The company continued to benefit from price reductions on its main ingredients through forward buying at agreed prices when milk powder was selling at record low prices and sugar prices were also low," said Caribbean Cream directors, Chairman Carol Clarke Webster and CEO Christopher Clarke - in a statement appended to the fourth-quarter results.
The ice cream maker is still enjoying contracts secured on key raw materials at reduced prices up to June as previously announced in its third-quarter filings. It said improved efficiencies were also realised through capital expenditure projects on the operations side.