CAC2000 Bottom Line Improves Due to Cost Containment Measures, Despite Lower Revenues

• Aided by cost containment measures, CAC2000 reported a net profit of $8.70Mn (EPS: $0.07) for the 6-month period ending April 2021, a significant improvement over the net of loss of $21.53Mn (EPS: -$0.17) incurred over the same period in 2020. The reduction was across the board as direct costs fell 18.4%, selling & distribution expenses declined 10.5% and general admin expenses contracted by 11.4% year over year. 
• The gains from greater efficiency were enough to outweigh the 11.3% (or $65.04Mn) drop in revenues as the COVID-19 pandemic continues to challenge the company both globally, through supply chain disruptions that have resulted in longer shipping times, shortage of materials and boarder closures and restrictions on travel; and locally as CAC continues to adjust to the regularly changing curfews, rules and days of work lost due to both. 
• The company recently launched EnRvate Limited, which is a joint business venture with Tropical Battery to provide energy-saving solutions to corporate clients. The venture bodes well for the diversification and growth of revenue in the coming years, as companies continue to explore ways to cut their energy costs and contribute to the green energy revolution. 
• CAC2000’s stock price has declined by 20.0% since the start of the year and closed Monday’s trading at $10.40, implying a P/E ratio of 21.2x earnings, which is below the junior market distribution sector average of 27.5x earnings.

(Source: Company Financials & NCBCM Research)