May 16, 2023
Caribbean Flavours and Fragrances Limited (CFF) for the three months ended March 31, 2023:
Revenue increased 22% to $212.83 million (2022: $174.16 million). Management noted that growth in exports from the Company continued during the review period, primarily in the Eastern Caribbean.
Gross profit increased 21% to $68.60 million (2022: $56.83 million).
Total expenses increased 29% to $44.49 million (2022: $34.59 million). This movement was due largely to a 29% increase in administrative expenses to $43.56 million (2022: $33.65 million).
Operating profit increased 8% to $24.11 million (2022: $22.25 million).
Net finance income increased 353% to $5.22 million (2022: $1.15 million).
Net profit increased 27% to $25.83 million (2022: $20.40 million).
Earnings per share (EPS) amounted to $0.029 (2022: $0.023). The trailing twelve-month EPS amounted to $0.075. The number of shares used in the calculations is 899,200,330. CFF’s stock price closed the trading period on May 15, 2023 at $1.26 with a corresponding P/E ratio of 16.88x.
Management noted, “CFF will continue planting new seeds in the export market while growing its presence in the domestic market through new products and a growing client pool of new businesses. We have added a product development officer and continue staff training in developing their technical skills which will be crucial as new opportunities come our way. The company continues to get increases from suppliers on certain raw materials with the surcharge to bring the item into the country being higher as well. Apart from one Eastern Caribbean country where we’ve made substantial headways in the last 12 months, we have begun to explore Guyana in a more material way as we look to work on providing different flavours and ingredients to businesses in that market.”
Balance Sheet Highlights:
Total assets as at March 31, 2023 increased 12% to $795.75 million (2022: $712.13 million). This movement was primarily due to ‘Due from related parties’, which amounted to $71.41 million (2022: nil).
Shareholders’ equity as at March 31, 2023 increased 8% to $589.68 million (2022: $545.03 million) resulting in a book value per share of $0.66 (2022: $0.61).
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