Kremi Net Profit Doubles Due to Revenue Growth

• For the first quarter ending May 2021, Kremi’s net profit doubled to $54.16Mn (EPS: $0.14). 
• This came on the back of a 27.6% (increase in revenues, which the company attributed to strong product demand, as it has taken the initiative to engage key suppliers, whose supply chains and prices are being affected by the ongoing pandemic. 
• Direct and operating expenses grew by 16.9% (or $49.37Mn) and 34.7% (or $36.28Mn), respectively. Opex grew owing to higher transportation costs due to higher consumer demand, salary increases, staff related expenditure and the full annualized cost for the new Ocho Rios depot. 
• Kremi stock price has appreciated by 36.4% since the start of the year to a price of $5.72 and currently trades at a P/E ratio of 16.8x earnings which is in line with the junior market manufacturing sector average.

(Source: Company Financials)