Kremi invests $100m in assets
Published:Tuesday | July 17, 2018 | 12:00 AMSteven Jackson/Senior Business Reporter
Ice cream maker Caribbean Cream Limited, which trades as Kremi, reported improved results for its first quarter ending May 2018, a period in which it also made a large investment in fixed assets, but did not disclose how the capital was deployed.
The company spent $101 million on activities which resulted in the expansion of the value of its property plant and equipment, according to its cash flow statement for the three-month period ending May.
The capital expenditure is already more than half the $167 million during its last financial year ending February 2018. CEO Christopher Clarke was said to be out of office until Thursday, when the Financial Gleaner sought his comment.
Notwithstanding the capital expenditure, the company closed the quarter with a larger pile of cash, $183 million relative to its holdings the previous year, which amounted to nearly $156 million.
The value of Kremi's fixed assets climbed from $427 million to $605 million in the May quarter, but there was no breakdown on what precisely accounted for the net movement by $178 million.
Since 2014, the company has invested more than $400 million to upgrade its warehousing space, cold room, blast freezers and flooring as it worked towards HACCP certification, which would enable it to export in the future.
For the quarter, ice cream and novelties sales were up 29 per cent to $412 million. Net profit performed even better - up 59 per cent to $55 million.
Improved product supply
"These results are attributed to improved product supply as a result of greater production efficiencies along with the introduction of a new range of novelties which are performing well in the market," said Kremi. "In addition, we continued our sales and marketing thrusts to expand our market penetration and top of the mind awareness of our product range," the company said.
Caribbean Cream is a manufacturer and distributor of bulk ice cream products. It produces over 20 flavours of Kremi ice cream in three-gallon, 1.5-gallon and quart sizes, as well as three flavours of ice cream cake novelties. It also distributes overseas brands of frozen novelties.
Caribbean Cream owns and operates three depots located between Montego Bay and Kingston. The ice cream maker reportedly commands a 50 per cent share of the bulk distribution market.