CFF reports a 37% decline in net profit for the third quarter ended March 2017

For the 9 months ended March 31, 2017, Caribbean Flavours & Fragrances Limited’s (CFF) revenue for the period in review increased by 13% to $300.67 million relative to $266.11 million for the comparable period in 2016. For the quarter, the Company generated gross revenue of $88.82 million, an increase of 21% year over year. The Company comments that “the improvement to our revenue was primarily driven by a rise in sale of our core products within the domestic markets”. Cost of sales also increased for the period to $181.71 million. This compares to the prior year’s figure of $167.96 million representing an increase of 8%.
As a result, gross profit increased by 21% to $118.97 million for the period in review and compares to the prior year’s amount of $98.15 million. “The gross profit generated for this reporting quarter was $34.87 million or a 16% growth when compared to the $30.17 million reporting for the similar period in 2016. The margins associated with both growth in local and foreign revenues combined with improvements in the sourcing of raw materials continue to have a positive impact on” gross profit.

The company had a 44% year on year increase in total expenses to $67.97 million up from $47.19 million in 2015. This was attributed to a 42% increase in administration expenses to $64.65 million (2016: $45.48 million) and a 94% increase in expenses associated with selling and distribution to $3.32 million (2016: $1.71 million).

Consequently, profit from operations for the period marginally increased to $50.99 million from $50.96 million while for the quarter there was a 38% decline from $17.83 million to $10.97 million. The company had a 30% decline in net finance income from $5.46 million in 2016 to $3.85 million in 2017.
As a result, net profit for the period amounted to $54.85 million representing a 3% decline from the comparable period’s figure of $56.42 million, while for the quarter net profit declined 37% from $19.13 million to $12.00 million.

The earnings per share for the quarter amounted to $0.13 (2016: $0.21) earnings per share for period totaled $0.61 relative to $0.63 in 2016. The twelve month trailing earnings per share is $0.81. The number of shares used in this calculation was 89,920,033 units.

The company ended its report stating “The net profit for the quarter was negatively impacted by one off professional costs incurred by the company to undertake the regulatory requirements of the Board for the mandatory minority shareholders reviews, valuation and publishing as required by the rules of the Financial Services Commision.”

Balance Sheet Highlights:
The company, as at March 31, 2017, recorded total assets of $388.49 million, an increase of 39% when compared to $278.97 million for the prior year.

Total Stockholders’ equity as at March 31, 2017 closed at $322.21 million, an improvement of 25% from $258.70 million last year. This resulted in a book value per share of $3.58 compared to a book value of $2.88 for the last year.

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2017-06-10T17:06:32+00:00