May 13, 2022
Caribbean Flavours and Fragrances (CFF), for the three months ended March 31, 2022, reported revenues of $174.16 million relative to the $133.74 million booked for the comparable period in 2021. This represented a 30% increase year over year.
Cost of sales amounted to $117.33 million relative to $89.22 million in the prior corresponding period. Despite this increase, gross profit rose 28% to close at $56.83 million for the period under review, compared to the prior year’s figure of $44.52 million.
The Company recorded a year over year increase in total expenses to $34.59 million, up from $30.48 million in 2021. This was attributable to a 43% growth in selling and distribution costs to total $941,000 (2021: $659,000). Whereas administrative expenses for the period rose by 13% to $33.65 million versus $29.82 million in the prior year’s corresponding period.
Consequently, profit from operations for the period closed at $22.25 million versus $14.04 million booked twelve months earlier. Finance income contracted by 76% to end at $1.15 million (2021: $4.89 million).
Pretax profit closed at $23.40 million (2021: $18.94 million). As a result, after incurring taxes of $3 million (2021: $2 million), net profit for the period increased 20% to $20.40 million compared to $16.94 million documented in the same period last year.
CFF mentioned, “With the schools reopen along with the entertainment sector, we are looking forward to the possible increase in sales demand for manufacturers which in turn would mean additional business for us. These increased sales figures will more than likely lag behind our reporting timeline when it should become visible to all readers. We will remain mindful of cost increases and look to absorb cost where possible or extract efficiencies in the business. We launched 3 new products last quarter and are introducing them in the second quarter through one of our clients.”
The earnings per share for the period amounted to $0.023 (2021: $0.019). The twelve months trailing EPS is $0.092. The number of shares used in this calculation was 899,200,330 units. As at May 13, 2022 the stock traded at $1.99 with a corresponding P/E of 21.54 times.
Balance Sheet at a glance:
The Company, as at March 31 2022, recorded total assets of $712.13 million, an increase of 8% when compared to $659.30 million for the prior year. ‘Property, plant and equipment’ and ‘Non current investments’ contributed to this growth, closing the period at $46.31 million (2021: $21.33 million) and $15 million (2021: nil) respectively.
Total Shareholders’ equity as at March 31, 2022 closed at $545.03 million, an improvement of 8% from $506.93 million last year. This resulted in a book value per share of $0.61 (2021: $0.56).
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