At the Annual General Meeting held at the Knutsford Court Hotel Mr. Clive Nicholas acting Chairman welcomed the group present and thanked shareholders for their presence. He introduced his fellow board members He then handed over to Managing Director, Mr. Derrick Derrick Cotterell, to present his overview of the company’s performance.
Mr. Cotterell began by highlighting the company’s strong growth throughout the years. He stated that, “the company has focused on staff and building and maintaining existing relationships”. He further noted, “the company is aiming to be the leading producer of fragrances and flavours to manufacturers in the Caribbean.” The company has embarked overseas training for its staff and customers to build and maintain relationships.
CFF, according to the Managing Director, is currently seeking to penetrate the Greater Antilles Market (Haiti, Dominican Republic and Cuba). This can be seen through their recent visit to Cuba to tap into new markets and attain more market share in the Caribbean. According to Mr. Cotterrell, “There are already Jamaican companies in the Cuban market and it is an opportune time for the company to try and enter that market.” The company will also try to penetrate markets in the lesser Antilles as it aims to be the leading supplier of fragrance and flavours in the Caribbean. The company also sees a future in the extraction industry and has already began plans to move into ginger extraction as it is a viable revenue generating business line. The company continues to be involved in the community and has placed focus on assisting students at the early childhood level. Following the Managing Director’s presentation, Chief Financial Officer (CFO), Mr. Ian Kelly, provided the financial highlights for the company.
For the year End 2017:
- Revenue for the 2017 financial year increased by 13% to $410.64 million relative to the 2016 figure of $362.50 million in 2016.
- Cost of sales also increased in the 2017 financial year to $242.69 million. This compares to the prior year’s figure of $227.81 million representing an increase of 7%.
- Net profit for the year amounted to $82.88 million representing a 12% increase from the 2016 year end figure of $74.07 million.
For the Quarter the following were highlighted:
- Revenue amounted to $99.59 million, a decline of 2%, when compared with the $101.15 million booked last year.
- Administrative Expenses increased 12% to $19.47 million (2016: $17.33 million), while Selling and Distribution Costs decreased by $3,000 to $986,000 for 2017. According to Mr. Cotterel “this was due to an increase in travelling associated with trips to Cuba and other Caribbean islands to seek revenue and to obtain training.” “This was also due to expense spent on workshops to train customers on how to make better products based on the scientific nature of the business this is intended to build brand loyalty among customers.”
- Profit before taxation totalled $18.00 million (2016: $20.22 million).
Caribbean Flavours and Fragrances Limited continues to be market leader in Jamaica for flavours in the drink division. The company has positioned itself well in Jamaica and is looking at obtain market share in the Greater and Lesser Antilles to boost revenues. According to Mr. Cotterrell, “CFF has a small percentage of the Caribbean market, which suggests that it has a large room for growth.”