March 3, 2022
For the period ended December 31, 2021, Caribbean Flavours & Fragrances Limited’s (CFF) revenue increased by 7% to $637.71 million versus the $593.75 million booked in 2020. For the quarter, the Company generated revenue of $173.53 million (2020: $141.85 million), a 22% increase year over year.
Cost of sales also increased for the period to $441.81 million, compared to the prior year’s figure of $403.17 million, representing an increase of 10% year over year. Gross Profit rose to $195.90 million for the period in review relative to the prior year’s amount of $190.58 million. For the quarter, gross profit closed at $46.52 million (2020: $46.71 million).
The Company had an 8% year over year increase in total expenses from $121.13 million in 2020 to $130.39 million in 2021. There was a 14% growth in Selling & Distribution Expenses to $7.07 million (2020: $6.20 million), while Administrative Expenses for the year climbed to $123.32 million versus the $114.94 million booked in 2020. “The movement in expenses was a companion of CFF’s increased sales effort to get their products to the markets we serve given the COVID-19 restriction,” the Management highlighted.
Profit from Operations for the year grew marginally by 1% to $73.15 million from $72.31 million the year prior, while for the quarter, Operating Profit was $21.03 million (2020: $17.44 million). CFF’s Net Finance Income dipped from $24.21 million in 2020 to $15.35 million as at December 31, 2021. According to CFF, the decline stemmed from lower Foreign Exchange Gains.
Despite a smaller Tax Charge of $8.9 million (2020: $14.21 million), Net Profit for the year dipped 3% to $79.60 million from the $82.30 million reported in 2020. While for the quarter, Net Profit was $21.23 million (2020: $24.22 million). The marginal decline was mainly attributable “to higher input costs and freight costs which the company did not want to pass onto the customer,” Management highlighted.
CFF had earnings per share for the year ended December 31, 2021 of $0.09 (2020: $0.09), while the EPS for the quarter amounted at $0.02 (2020: $0.03). The number of shares used in this calculation was 899,200,330 units. As at March 3, 2022 the stock traded at $1.99 with a corresponding P/E ratio of 22.48 times.
Balance Sheet at a glance:
The Company, as at December 31, 2021, recorded total assets of $725.31 million, an increase of 14% when compared to $635.02 million for the prior year. This increase was due to increases in: ‘Receivables’, which closed at $104.16 million (2020: $79.71 million), ‘Inventories’, increasing to $185.43 million from $150.72 million in 2020, and the value of ‘Property, Plant & Equipment’ which rose 97% to $44.68 million in 2021 (2020: $22.72 million).
Total Stockholders’ equity closed at $524.63 million, an improvement of 7% from $490 million last year. This resulted in a book value per share of $0.58 compared to a book value of $0.54 for the last year.
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