August 16, 2024
PRESS RELEASE
FOR IMMEDIATE RELEASE
CFF TARGETS $1 BILLION REVENUE AS EXPORT STRATEGY GAINS MOMENTUM
REPORTS 13.59% INCREASE IN GROSS PROFIT FOR FIRST HALF OF 2024
(Kingston, Jamaica) Caribbean Flavours and Fragrances Limited (CFF), a leading provider of flavours and fragrance solutions in the region, has announced its financial results for the six months ended June 30, 2024. The company recorded steady growth despite ongoing challenges in the domestic economy, reflecting the strength of its operations and strategic positioning.
For the first half of 2024, CFF’s revenue grew by 3.66% to J$447.91 million, compared to J$432.08 million in the same period of 2023. Gross profit saw a notable improvement of 13.59%, rising to J$163.4 million, with gross profit margins increasing to 36.48%. This performance highlights the company’s ability to optimize its logistics and procurement strengths, implement effective cost efficiency strategies whilst maintaining competitive margins despite the global challenges.
Operating expenses for the period increased by 17.38% to J$101.96 million, driven by higher staff security and insurance costs. Despite these increases, the company managed to achieve profit before tax, amounting to J$68.83 million.
The transition to full taxation at the standard 25% rate, compared to the previous year’s 12.5% rate, resulted in a 12.08% decline in after-tax profit to J$52.83 million. This shift also led to a decrease in earnings per share, which moved from J$0.07 for the same comparative period in 2023 to J$0.06 in the current period.
CFF’s balance sheet remains robust, with total assets increasing by 4.42% to J$892.19 million. Current assets, which now stand at J$723.72 million have significantly influenced this growth and underscore the company’s strategic focus on maintaining adequate inventory and effectively fulfilling customer demand. Shareholders’ equity also saw a healthy increase of 12.8%, now totaling J$704.54 million.
Despite a challenging equities market, CFF’s stock price ended the second quarter at J$1.55, reflecting a 13.89% decline from the start of 2024. The company’s market capitalization now stands at J$1.39 billion.
Looking ahead, CFF remains committed to its ambitious goals of achieving J$1 billion in assets and revenue,” said Derrick Cotterell, Chairman and Executive Director of CFF. “The company plans to expand its presence in key Caribbean markets while introducing new products tailored to evolving consumer needs. Additionally, CFF continues to focus on enhancing its export capabilities, targeting a long-term strategy to make exports 30% of its total revenue. Against the backdrop of a tight labor market and reduced domestic consumption, we are proud of our performance in the first half of 2024. Our dedicated team remains focused on delivering quality products at competitive prices, and we are confident in our ability to meet our growth objectives in the latter half of the year.”
CFF continues to navigate economic headwinds, including foreign exchange volatility and supply chain disruptions, through proactive risk management and strategic planning. The company recently attended the 25th Trade and Investment Convention in Trinidad and Tobago and will be participating in additional trade shows in the coming months to drive further growth in its export markets.
The company’s Annual General Meeting is scheduled for September 11, 2024, at the Terra Nova Hotel, with virtual participation available via Facebook.
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