May 14, 2021
Caribbean Flavours and Fragrances (CFF), for the three months ended March 31, 2021, reported revenues of $133.74 million relative to $149.39 million for the comparable period in 2020. CFF stated that, “the Company’s performance was affected by the downturn in the local beverage market due to a shortage of sugar which is a critical raw material for beverage manufacturing and delays in receiving of substantial export orders.”
Cost of sales amounted to $89.22 million relative to $101.55 million in the prior corresponding period. Consequently, gross profit fell 7% to close at $44.52 million for the period under review, compared to the prior year’s figure of $47.84 million.
The Company recorded a year over year decline in total expenses to $30.48 million, down from $31.95 million in 2020. There was a 62% decrease in selling and distribution costs to total $659,000 (2020: $1.76 million). Whereas, administrative expenses for the period fell 1% to $29.82 million versus $30.19 million in the prior year’s corresponding period.
Consequently, profit from operations for the period closed at $14.04 million versus $15.89 million booked twelve months earlier.
Pretax profit closed at $18.94 million (2020: $18.96 million). As a result, after incurring taxes of $2 million (2020: $4.74 million), net profit for the period increased 19% to $16.94 million compared to $14.22 million documented in the same period last year.
CFF mentioned, “Covid-19 continues to restrict the full implementation of our Business Plans, which are anchored on the pillars of revenue growth, new product development and expense management as we aim to improve the year over year financial performance.”
The earnings per share for the period amounted to $0.019 (2020: $0.016). The twelve months trailing EPS is $0.095. The number of shares used in this calculation was 899,200,330 units. As at May 13, 2021 the stock traded at $2.30 with a corresponding P/E of 24.33 times.
Balance Sheet at a glance:
The Company, as at March 31 2021, recorded total assets of $659.30 million, an increase of 16% when compared to $567.96 million for the prior year. ‘Inventories’ and ‘Short term investments’ contributed to this growth, closing the period at $182.61 million (2020: $133.40 million) and $250.64 million (2020: $209.24 million) respectively.
Total Shareholders’ equity as at March 31, 2021 closed at $506.93 million, an improvement of 14% from $444.40 million last year. This resulted in a book value per share of $0.56 (2020: $0.49).
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
