August 16, 2021
For the period ended June 30, 2021, Caribbean Flavours & Fragrances Limited’s (CFF) revenue decreased by 3% to $301.30 million relative to $310.59 million for the comparable period in 2020. For the quarter, the Company generated revenue of $167.56 million (2020: $161.20 million), a 4% increase year over year. CFF noted that, “this was largely due to an increased activity in the fragrance business following a noticeable improvement by our local manufacturing clients as the Jamaican economy began to reopen during the period.”
Cost of sales also increased for the period to $205.53 million, this compares to the prior year’s figure of $211.83 million, representing a decrease of 3% year over year. Consequently, gross profit fell to $95.77 million for the period in review and compares to the prior year’s amount of $98.76 million. For the quarter, gross profit closed at $51.25 million (2020: $50.92 million).
The Company had a 2% year over year increase in total expenses to $60.78 million, up from $59.45 million in 2020. There was a 25% contraction in selling & distribution expenses to $1.60 million (2020: $2.12 million). Whereas administrative Expense for the period climbed to $59.18 million versus the prior year’s corresponding total of $57.33 million.
Consequently, Profit from Operations for the period decreased to $35 million versus $39.31 million booked for the period ended June 30, 2020. While for the quarter, there was a 11% decline from $20.95 million to $23.42 million in 2020. The Company reported a 12% increase in net finance income from $10.07 million in 2020 to $11.24 million in 2021.
Following taxation of $5 million (2020: $6.12 million), net profit for the period amounted to $41.23 million representing a 5% decrease from the comparable period’s figure of $43.26 million, while for the quarter, net profit fell by 16% from $29.04 million to $24.29 million in 2021.
The earnings per share for the period months amounted to $0.046 (2020: $0.048). While, the EPS for the quarter amounted at $0.027 (2020: $0.032). The twelve months trailing EPS is $0.089. The number of shares used in this calculation was 899,200,330 units. As at August 13, 2021 the stock traded at $2.04 with a corresponding P/E ratio of 22.85 times.
Balance Sheet at a glance:
The company, as at June 30, 2021, recorded total assets of $675 million, an increase of 6% when compared to $637.94 million for the prior year. This increase was as a result of increases in ‘Short term investments’ and ‘Receivables and payments’ which closed at $260.16 million (2020: $234.10 million) and $112.83 million (2020: $103.26 million), respectively.
Total Stockholders’ equity closed at $531.23 million, an improvement of 12% from $473.44 million last year. This resulted in a book value per share of $0.59 compared to a book value of $0.53 for the last year.
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