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.
DISCLAIMER:
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.