3 months ago
16
Cigarette trader Carreras Limited posted a net profit of $1.4 billion for the first quarter ended March 2025, more than double the $568.5 million earned in the year prior, as the cigarette distributor benefited from price increases.
The strong performance was fuelled by a 63 per cent rise in operating revenue, which reached $4.4 billion, compared to $2.7 billion in the same period last year.
“This growth is primarily attributed to the price increase implemented in the second quarter of 2024,” Managing Director Franklin Murillo reported to shareholders in the company’s first quarter earnings report.
As a result, gross margin nearly doubled, climbing to $2.6 billion from $1.4 billion.
Carreras also spoke on its ongoing fight against the illicit cigarette trade, citing its impact on public health, commerce, and government revenues.
“Carreras continues to strengthen partnerships with law enforcement and implement targeted strategies aimed at disrupting the illegal market, which is increasingly tied to wider criminal activity,” said Murillo.
During the quarter the company approved an interim dividend of $0.26 per stock unit, totalling $1.3 billion.
The company’s total assets grew to $9.9 billion, up from $6.9 billion a year earlier, bolstered by improvements in working capital and strong cash management. Net cash generated from operating activities amounted to $1.2 billion, a 25 per cent increase year-over-year. It ended the quarter with a $4.6 billion cash balance, up more than 50 per cent from the $3 billion a year earlier.
Murillo also underscored Carreras’ commitment to environmental responsibility and social impact, stating, “Through strategic collaborations with Project STAR and the Jamaica Chamber of Commerce, we are advancing both the company’s and the nation’s ESG agenda.”
ESG focuses on a business’ environmental, societal, and governance touch points.
Looking ahead, Carreras remains focused on cost efficiency and market expansion.
English (US) ·