Caribbean Cream Limited

What it is

Caribbean Cream makes and sells ice cream, ice cream cakes, and frozen icicles in Jamaica, and imports and distributes frozen novelties — all under the Kremi brand. Its distribution model is distinctively local: community vendors on motorbikes and bicycles sell direct to residents’ gates, while entrepreneurs can license small “Scoop Shops” from approved sites.

The company listed on the Jamaica Junior Stock Exchange in 2013, the first ice cream maker to do so. It also manufactures ice cream mix — the intermediate ingredient — for its controlling shareholder Scoops Unlimited, which runs the well-known Devon House I’Scream parlours.

Who owns it

Caribbean Cream is a subsidiary of Scoops Unlimited Limited. Scoops Unlimited, which operates Devon House I’Scream, owns 78% of Caribbean Cream, leaving roughly 22% as a free float on the junior market.

Scoops Unlimited was founded in 1989 by Carol Clarke, who also serves as Chairperson of the Board of Caribbean Cream.

Who runs it

Christopher Andrew Clarke — Carol’s son — founded Caribbean Cream in April 2006 and has been its CEO and Managing Director since inception. He stepped down as Chairman in November 2023 to focus full-time on executive management; Dr. Matthew Clarke was appointed Chairman in his place.

A CFO is not disclosed in available sources.

The money, in plain words

For the financial year ended February 28, 2025, net profit fell 52% to J$17.8 million (US$114,000) from J$36.7 million the year before. That means the company kept less than one cent of profit from every dollar of sales — a net profit margin of roughly 0.6% (our calculation) — thin even by food-manufacturing standards.

In the prior year (FY24, ended February 28, 2024), revenue was J$2.64 billion, a 5% increase on J$2.51 billion. Gross profit that year rose 19% to J$923.6 million, but rising administrative costs consumed most of the gain.

For every J$1 owners have put into the business, the company generated about two cents of annual return — a return on equity of roughly 2% in FY25 (our calculation), low for any sector.

Total assets stood at J$2.52 billion at FY24 year-end, driven mainly by property, plant and equipment of J$1.76 billion. By FY25, cash reserves had fallen sharply, from J$140 million to J$38 million, signalling tighter liquidity.

No dividend was declared in either FY23 or FY24.

What it is doing now

FY25 marked the first time Kremi crossed J$3 billion in annual revenue — a milestone the company had publicly targeted — yet profit fell by half as the capital investment cycle bit harder than sales growth could offset. The most concrete near-term project is a J$50-million underground water well at its Kingston plant, expected to come online around September 2025, which should meaningfully cut utility costs and improve production efficiency.

The company has also installed a new cold room commissioned in November 2023, and implemented an enterprise resource planning system linking its finance, manufacturing, and supply-chain data. Clarke has played down any imminent international expansion, saying co-packing volumes are growing but not yet significant, and that the priority remains improving Jamaican sales and efficiency.

What to watch

• Margin recovery: Revenue is growing but profit is shrinking — watch whether the well project and ERP system lower costs enough in FY26 to widen the net margin back above 1–2%.
• Liquidity: Cash has dropped to J$38 million while lease liabilities have surged; any further capital outlay could strain working capital.
• Ownership concentration: With ~78% in one family holding company and a tiny free float, the stock is thinly traded — any shift in the Clarke family’s intentions would move the share price sharply.
• Dividend resumption: No dividend in at least two consecutive years; when — and whether — it returns will be a signal of management’s confidence in cash generation.

This is news, not investment advice.