Source: Jamaica Gleaner
Caribbean Cream Limited trades as Kremi and is gunning for a new milestone. It’s aiming for revenue of $3 billion this financial year, which would require growing sales by 13 percent.
The target disclosed in the company’s annual report would result in a record revenue haul for Caribbean Cream, which makes and distributes ice cream in bulk but also sells novelty products under the Kremi brand through retail channels.
In its past financial year ending February 2024, the company generated sales of $2.64 billion, which reflected growth of five percent from $2.5 billion in the prior year.
“We have the right investments in the business for the growth plan,” said Director Wayne Wray, referring to Kremi’s revamped factory systems. It might take time for the company to adjust to its new capabilities fully, he said, referring to the steep learning curve involved in managing the revamped factory systems.
Within the current financial year, Kremi’s sales in the first quarter ending May grew by 26 percent. The company’s sales in the first quarter grew 26 percent to $764 million, while profit improved by 130 percent to $15.4 million. To hit the 2025 revenue target, its next three quarters would need to average sales of $746 million per quarter.
Referencing the earnings growth in the first quarter, Kremi Chairman Dr Matthew Clarke and CEO Christopher Clarke indicated that the company had more work to do to better its performance.
“While this is positive, we recognize the need to deliver higher levels of profitability for our shareholders and are working diligently to ensure this happens,” the Clarkes said in a statement summarising the financial results.
At the year ending February 2024, the ice cream maker churned out an annual profit of $37 million, bettering the $27 million in the prior year, amid improvements at the plant.
Last year, Kremi installed a new cold room that was commissioned in November and implemented a new enterprise resource planning system that integrates the finance department with data from the manufacturing operation, and the ice cream maker’s supply chain. Production capacity also grew with the installation of a new boiler, and progress was made on a combined heat and power energy system that’s expected to further reduce costs.
Kremi plans to scale down large capital projects and focus more on smaller initiatives moving forward.
During the year, revenue from new products exceeded expectations. Also, sales to the hotel sector grew in the year, reflecting recovery from the fallout from the pandemic.
Kremi Chairman Dr Matthew Clarke indicated that the company expects to make further inroads into the hotel market, in the company’s annual report.
THE AUTHOR: Steven Jackson
