CFF reports 11% decline in first quarter net profits.

Caribbean Flavours and Fragrances Limited

For the quarter ended September 30, 2017:

Revenue amounted to $99.59 million, a decline of 2%, when compared with the $101.15 million booked last year. CFF noted, “The quarter was negatively impacted by severe and unusual weather conditions which negatively impacted sea transportation from our importing countries. Other major issues at our local seaport which negatively impacted our logistics for incoming raw materials, our ability to deliver finished goods to our overseas customers and ultimately revenue”.

Cost of Sales declined by 1% to $63.25 million compared to 2016’s total of $64.03 million for the first quarter. As such, Gross Profit declined by 2%, amounting to $36.34 million, relative to $37.11 million for 2016.

Administrative Expenses increased 12% to $19.47 million (2016: $17.33 million), while Selling and Distribution Costs decreased by $3,000 to $986,000 for 2017. CFF stated, “We will continue to with refinement of our strategies and the improvement to our various cost structures in order to drive the desired efficiency whilst improving our cost of sales and gross profit.”

Net Finance increased declined by 50% to $2.12 million compared to the $1.42 million for the same period of 2016.

Profit before taxation totalled $18.00 million (2016: $20.22 million), a decline of 11%. No taxation was booked for the period under review.

Earnings per share for the first three months ended September 30, 2017 amounted to $0.20 (2016: $0.22). the twelve months trailing EPS is $0.90. The number of shares used in the calculation was 89,920,033 units.

According to the management of CFF, “The company expects that there will be normality to the many issues faced during this quarter and as such expect to report an improvement in these results over the next reporting period as many of these challenges would have been normalized”


Balance Sheet at a glance:

As at September 30, 2017, Total Assets amounted to $389.04 million, $66.33 million more than its balance of $322.71 million a year prior. This increase was driven by a 46% or $41.49 million increase in short term investments to total $131.79 million (2016:$90.30 million)  and a 32% or $22.90 million to close at $93.56 million (2016: $70.65 million).

Shareholders’ Equity totalled $348.57 million (2016: $287.57 million) with a book value of $3.88 (2016: $3.20).



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