Carreras 2024 Results are Smoking Hot

  • Carreras Limited (CAR) huffed and puffed and blew through the financial year, registering a 40.9% year-on-year increase in earnings to $6.23Bn for its 2024 financial year1. CAR’s robust net profit was driven by healthy revenue growth and lower cost of goods sold (COGS).
  • The company generated J$19.55Bn in revenues for FY2024, 11.5% higher than the year before. This represents its highest revenue to date and reflects the high demand for its recently launched products (Vuse Go & Vuse Go Max disposable vapes), coupled with a price increase from the second quarter.
  • Augmenting the solid topline performance, COGS declined marginally by 3.2% YoY to $8.66Bn, resulting in its gross profit increasing to J$10.89Bn (+26.9%). Meanwhile, operating expenses increased by 8.8% largely due to higher distribution and administrative costs amid higher sales volumes and a broader industry-wide increase in security costs as the company invests in ensuring workforce and asset safety.
  • Carreras continues to demonstrate a strong dividend track record with a dividend yield of 8.30%.
  • With its strong financial performance and track record of high dividend payments, Carreras’ stock price has increased by 21.0% year to date, closing at J$15.78 per share on Thursday. With the price appreciation, Carreras’s P/E though still below its peers, is converging towards the peer average. The stock trades at a P/E of 12.29x versus the 13.45x Main Market Manufacturing & Distribution Average.

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1Caribbean FY2024 report compared the 12 months ended December 2024 to the 9 months ended December 2023 because it changed its financial year-end from March 31 to December 31 to align its reporting period with that of its parent company, British American Tobacco plc. Hence, NCBCM adjusted the 2023 figures to reflect the 12 months ended December 2023 by including the quarter ended March 2023.

(Source: CAR Financial Statements & NCBCM Research)