March 1, 2024
Caribbean Flavours and Fragrances Limited (CFF)
Unaudited financials for the first quarter ended March 31, 2024:
Caribbean Flavours and Fragrances Limited (CFF), for the first quarter of March 31, 2024, reported a 12% decrease in revenue totaling $187.56 million compared to $212.83 million in the following three months last year.
The Company’s cost of sales declined 15% in the quarter to close at $122.44 million relative to $$144.23 million in 2023. Despite the decline in cost of sales, gross Profit amounted to $65.12 million, down 5% when compared to $68.60 million for the first quarter ended March 31, 2023.
Notably, administrative expenses increased 12% to close at $48.65 million (2023: $43.56 million). CFF’s selling & distribution costs surged by 85% from $931,000 in 2023 to $1.73 million for the three months. This significant increase was driven by a rise in marketing spending and associated distribution costs. As a result, total expenses for the quarter closed at $50.38 million, a 13% uptick relative to the $44.49 million recorded in 2023.
Operating profit for the three months amounted to $14.74 million, a 39% downturn versus $24.11 million documented in 2023.
Pre-tax Profit for the first quarter ended March 31, 2024, amounted to $16.43 million, a 44% decrease relative to $29.33 million reported in 2023.
Despite the 14% increase in taxation to reach $4.00 million (2023: $3.50 million), the net profit for the three months amounted to $12.43 million, a 52% fall from the $25.83 million reported in 2023.
Management noted, “Despite the headwinds experienced in Q1 2024, CFF introduced two new flavours, Mango Pineapple and Blue Lemonade, to the market. Both flavours were received well by a new local client. The company also introduced new fabric softener bases and a new black glacier fragrance. We continue to work with our various customers to develop new flavours ahead of the summer season.”
Consequently, Earnings Per Share for the three months amounted to $0.01 (2023: EPS: $0.03). The twelve-month trailing EPS was $0.13, and the number of shares used in these calculations was 899,200,330. Notably, CFF’s stock price closed the trading period on May 15, 2024, for $1.70, with a corresponding P/E ratio of 12.80x.
Balance Sheet Highlights
The Company’s assets totaled $808.02 million (2023: $795.75 million). The increase in the Company’s asset base is attributed to a $158.12 million growth in Due from related parties, which closed the quarter at $229.53 million (2023: $71.41 million).
Shareholder’s equity was $664.14 million (2023: $589.68 million), representing a book value per share of $0.74 (2023: $0.66).
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