CFF reports 23% increase in six months net profit

August 17, 2020

For the period ended June 30, 2020, Caribbean Flavours & Fragrances Limited’s (CFF) revenue increased by 37% to $310.59 million relative to $226.33 million for the comparable period in 2019. For the quarter, the Company generated revenue of $161.20 million (2019: $113.75 million), a 42% increase year over year. CFF noted that, “this was driven by a growth in sales in both the local and overseas markets as well as capitalizing on new opportunities as a response to the COVID-19 pandemic.”

Cost of sales also increased for the period to $211.83 million, this compares to the prior year’s figure of $141.83 million, representing an increase of 49% year over year. Gross profit increased to $98.76 million for the period in review and compares to the prior year’s amount of $84.50 million. For the quarter, gross profit closed at $50.92 million (2019: $47.21 million). Management stated, “we continue to focus on implementing the strategy of improving our efficiencies while driving our cost of sales down with improved purchasing and logistics costs.”

The Company had a 20% year over year increase in total expenses to $59.45 million, up from $49.74 million in 2019. There was a 205% increase in selling & distribution expenses to $2.12 million (2019: $694,000). Whereas, administrative Expense for the period climbed to $57.33 million versus the prior year’s corresponding total of $49.04 million.

Consequently, Profit from Operations for the period decreased to $39.31 million versus $34.76 million booked for the period ended June 30, 2020. While for the quarter, there was a 1% decline from $23.61 million to $23.42 million in 2020. The Company reported an 84% increase in net finance income from $5.48 million in 2019 to $10.07 million in 2020.

Following taxation of $6.12 million (2019: $5.02 million), net profit for the period amounted to $43.26 million representing a 23% increase from the comparable period’s figure of $35.22 million, while for the quarter, net profit also increased by 25% from $23.29 million to $29.04 million in 2020. “This was driven by a combination of expense management and efficiency gains partly due to the pandemic”, CFF stated.

The earnings per share for the period months amounted to $0.48 (2019: $0.39). While, the EPS for the quarter amounted at $0.32 (2019: $0.26). The twelve months trailing EPS is $0.44. The number of shares used in this calculation was 89,920,033 units. As at August 17, 2020 the stock traded at $12.80.

 Balance Sheet Highlights: 

The company, as at June 30, 2020, recorded total assets of $637.94 million, an increase of 24% when compared to $513.33 million for the prior year. This increase was as a result of increases in ‘Right of use assets’ and ‘Receivables and payments’ which closed at $81.08 million (2019: nil) and $103.26 million (2019: $64.42 million), respectively.

Total Stockholders’ equity as at June 30, 2020 closed at $473.44 million, an improvement of 2% from $462.38 million last year. This resulted in a book value per share of $5.27 compared to a book value of $5.14 for the last year.

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