August 19, 2024

Caribbean Flavours and Fragrances Limited(CFF)
Unaudited financials for the six months ended June 30, 2024:

Caribbean Flavours and Fragrances Limited (CFF) reported a 4% increase in revenue totaling $447.91 million for the six months ended June 30, 2024, compared to $432.08 million in the corresponding period last year. Revenue for the second quarter increased 19% to $260.35 million compared to $219.25 million for the comparable quarter of 2023.

The cost of Sales amounted to $284.51 million (2023: 288.23 million), a decrease of 1% year over year. Consequently, gross Profit increased by 14% to $163.40 million compared to $143.85 million for the six months ended June 30, 2023. The company booked a gross Profit of $98.28 million for the second quarter versus $75.25 million reported for the similar quarter of 2023.

Administrative Expenses increased by 15% to close at $97.48 million (2023: $84.78 million), while Selling & Distribution costs increased by 115% from $2.09 million in 2023 to $4.48 million in the period under review. As a result, total expenses for the six months ended June 30, 2024, amounted to $101.96 million, a 17% increase relative to $86.86 million reported in 2023.

Operating Profit for the six months ended June 30, 2024, amounted to $61.44 million, an 8% increase relative to $56.99 million reported in 2023. Operating Profit for the second quarter amounted to 46.70 million (2023: $32.78 million). Finance Income totaled $7.39 million, a 34% decrease from last year’s period. (2023: $11.23 million).

Pre-tax Profit for the six months ended June 30, 2024, amounted to $68.83 million, a 1% increase relative to $68.21 million reported in 2023. Pre-tax Profit for the second quarter amounted to 52.40 million (2023: $38.79 million). Taxation increased 113% to $16.00 million for the six months ended June 30, 2024 (2023: $7.50 million). Net Profit for the six months was $52.83 million, a 13% decrease from the $60.71 million reported in 2023. For the second quarter, Net Profit was $40.40 million (2023: $34.79 million).

Consequently, Earnings Per Share for the six months amounted to $0.06 (2023: EPS: $0.07), while Earnings Per Share for the quarter totaled $0.04 (2023: EPS: $0.04). The twelve-month trailing EPS was $0.14, and the number of shares used in these calculations was 899,200,330.

Notably, CFF’s stock closed the trading period on August 16, 2024, at $1.70, with a corresponding P/E ratio of 12.24x.

Balance Sheet Highlights

The company’s assets totaled $892.19 million (2023: $854.45 million). The company’s overall asset base growth is due to a 61% year-over-year increase in “Property, plant and equipment,” which ended the quarter at $58.23 million (compared to $36.26 million in 2023). Additionally, there was a 42% year-over-year rise in “Due from related parties,” ending the quarter at $248.69 million (up from $174.86 million in 2023), and a 28% year-over-year increase in “Receivables and payments,” which closed the quarter at $173.77 million (compared to $135.63 million in 2023).

Shareholder’s equity was $704.54 million (2023: $624.56 million), representing a book value per share of $0.78 (2023: $0.69). The increase is driven by a 13% year-over-year increase in the retained earnings account.

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