Bizbriefs: Earnings reports
Caribbean Cream revenue up, profit slips
Ice cream sales at Caribbean Cream Limited, which trades as Kremi, are still growing strongly, aided by new products and distribution, but profits declined in the third quarter ending November 2016.
Net profit totalled $19 million for the quarter, down 51 per cent from $39 million a year earlier.
The company packed on more expenses during the quarter as it secured a distributor and launched a new coffee-rum product.
Revenues for the quarter are up five per cent to $271 million from $258 million a year earlier, but the cost of sales increased, which reduced gross profit by 13 per cent to $89 million.
"Selling and distribution costs in the quarter increased by 38 per cent, or $3.8 million as a result of increased marketing expenditure which included the launch of our new coffee rum cream in pints and quarter. We are also outsourcing the delivery of our products. We are anticipating greater efficiencies in the distribution of our products," said management.
Over nine months, the company's net profit totalled $137 million or 36 cents per share, up 11 per cent from $124 million or 33 cents per share a year earlier.
Paramount profits down but bullish on business
Paramount Trading Jamaica Limited made less profit due in part to currency movements during its second quarter ending November 2016, but its outlook is favourable for the remainder of the year.
The company continues to build out its new plant spanning 13,500 square feet in a joint venture with Allegheny Petroleum.
Net profit over the quarter totalled $36.7 million or 26 per cent lower than the $46.5 million a year earlier. Earnings per share totalled two cents, down from three cents.
"Despite a competitive environment, the company's revenues continue to reflect relatively strong growth," said Paramount in its second-quarter earnings report.
"Our construction and petroleum oils business lines produced strong sales performance during this quarter when compared to last year, growing by 62 per cent and 28 per cent, respectively, and we expect this trend to continue."
Half-year profit declined by 58 per cent to $51.6 million or three cents per share from $89 million or six cents per share.
Knutsford Express bottom line rewarded as bus schedule expands
Luxury bus company Knutsford Express Limited recorded a 19 per cent rise in net profit to $30 million in the second quarter ending November.
The service remains a preferred choice for cross-country trips. Revenue grew to $176.4 million, up 38 per cent from $128.6 million a year earlier.
"We continue to grow our schedule in order to meet the needs of our growing passenger base, and we have been rewarded with a significant increase in revenues," said the company headed by Oliver Townsend in its latest quarterly earnings report.
Over six months, Knutsford's earnings per share totalled 66 cents, compared to 61 cents the year before. Total assets have also grown by 24 per cent to $466 million, reflecting its continued investment in new coaches.
The company previously attributed its business gains to the opening of the North-South highway, which cut the commute time between Ocho Rios and Kingston and allowed for increased bus runs.
The bus company also added a new stream of income from shuttle services to airports, and rentals to visitors and corporate executives, through new subsidiary KE Connect Limited, launched last year.