August 16, 2021
For the period ended June 30, 2021, Caribbean Flavours & Fragrances Limited’s (CFF) revenue decreased by 3% to $301.30 million relative to $310.59 million for the comparable period in 2020. For the quarter, the Company generated revenue of $167.56 million (2020: $161.20 million), a 4% increase year over year. CFF noted that, “this was largely due to an increased activity in the fragrance business following a noticeable improvement by our local manufacturing clients as the Jamaican economy began to reopen during the period.”
Cost of sales also increased for the period to $205.53 million, this compares to the prior year’s figure of $211.83 million, representing a decrease of 3% year over year. Consequently, gross profit fell to $95.77 million for the period in review and compares to the prior year’s amount of $98.76 million. For the quarter, gross profit closed at $51.25 million (2020: $50.92 million).
The Company had a 2% year over year increase in total expenses to $60.78 million, up from $59.45 million in 2020. There was a 25% contraction in selling & distribution expenses to $1.60 million (2020: $2.12 million). Whereas administrative Expense for the period climbed to $59.18 million versus the prior year’s corresponding total of $57.33 million.
Consequently, Profit from Operations for the period decreased to $35 million versus $39.31 million booked for the period ended June 30, 2020. While for the quarter, there was a 11% decline from $20.95 million to $23.42 million in 2020. The Company reported a 12% increase in net finance income from $10.07 million in 2020 to $11.24 million in 2021.
Following taxation of $5 million (2020: $6.12 million), net profit for the period amounted to $41.23 million representing a 5% decrease from the comparable period’s figure of $43.26 million, while for the quarter, net profit fell by 16% from $29.04 million to $24.29 million in 2021.
The earnings per share for the period months amounted to $0.046 (2020: $0.048). While, the EPS for the quarter amounted at $0.027 (2020: $0.032). The twelve months trailing EPS is $0.089. The number of shares used in this calculation was 899,200,330 units. As at August 13, 2021 the stock traded at $2.04 with a corresponding P/E ratio of 22.85 times.
Balance Sheet at a glance:
The company, as at June 30, 2021, recorded total assets of $675 million, an increase of 6% when compared to $637.94 million for the prior year. This increase was as a result of increases in ‘Short term investments’ and ‘Receivables and payments’ which closed at $260.16 million (2020: $234.10 million) and $112.83 million (2020: $103.26 million), respectively.
Total Stockholders’ equity closed at $531.23 million, an improvement of 12% from $473.44 million last year. This resulted in a book value per share of $0.59 compared to a book value of $0.53 for the last year.
Analyst Certification –This research report is for information purposes only and should not be construed as a recommendation. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure –The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.