August 16, 2023
FOR IMMEDIATE RELEASE
PRESS RELEASE
CARIBBEAN FLAVOURS AND FRAGRANCES LIMITED (CFF) REPORTS STRONG FINANCIAL RESULTS FOR SECOND QUARTER ENDING JUNE 2023
REVENUE SURPASSES $200 MILLION MARK FOR CONSECUTIVE QUARTERS, GROSS PROFIT MARGIN IMPROVES, AND NET PROFIT SEES SIGNIFICANT GROWTH
KINGSTON, Jamaica – Caribbean Flavours and Fragrances Limited (CFF), a leading player in the flavours and fragrances industry, is pleased to announce its financial results for the second quarter ending June 30, 2023. The company continued its impressive growth trajectory, achieving strong revenue growth, improved profitability, and enhanced gross profit margins during the quarter.
CFF’s revenue for the second quarter increased by an impressive 18.07% to reach J$219.248 million. This marks yet another consecutive quarter where the company has surpassed the J$200 million revenue milestone. This achievement can be attributed to the successful expansion of its special items business, reflecting the effectiveness of CFF’s strategic initiatives in the Eastern Caribbean and Spanish-speaking markets.
Derrick Cotterell, Managing Director of Caribbean Flavours and Fragrances Limited, remarked, “We are delighted to present our outstanding financial performance for the second quarter of 2023. The company’s ability to consistently generate revenue above the J$200 million mark underscores the strength of our business model and the dedication of our team. We remain committed to pursuing various initiatives that will contribute to our sustained growth in the years ahead.”
Gross profit saw significant improvement, growing by 27.63% to reach J$75.250 million, driven by deliberate logistics and purchasing strategies. This resulted in an improved gross profit margin of 34.32%, up from the 31.75% reported in the previous quarter.
Despite the challenges posed by supply chain disruptions in the region, CFF managed to achieve impressive financial results. Total expenses increased by 34.52% to J$42.469 million driven by increased staff costs given the investments made in staff, product development, and other expenses. The company reported net finance income of J$6.004 million, a remarkable turnaround from a net finance expense of J$33,000 in the previous quarter, benefiting from an improved investment portfolio.
Profit before taxation witnessed a robust increase of 41.79% to J$38.785 million, and net profit for the quarter reached J$34.785 million, representing a significant growth of 42.83% compared to the same period last year. Earnings per share (EPS) also experienced a positive shift, moving from $0.03 to $0.04.
Performance Review Six (6) Months Ended June 2023
CFF’s performance for the first half of 2023 showcased remarkable growth. Revenue for the six-month period surged by 20.07% to reach J$432.079 million, surpassing the company’s previous best performance. Gross profit rose by 24.23% to J$143.849 million, with gross margins improving to 33.29%. Profit before tax increased by 34.41% to J$68.212 million, and net profit grew by 35.67% to J$60.712 million. EPS also experienced a positive shift, moving from J$0.05 to J$0.07.
“Our exceptional performance in the first half of the year speaks volumes about our resilience and commitment to delivering quality products to our customers. Despite the challenges posed by the economic environment, we have continued to outperform and remain on track to exceed our record-breaking 2020 performance,”shared Cotterell.
Strong Balance Sheet and Forward-Looking Strategies
CFF’s balance sheet reflected steady growth, with total assets increasing by 10.75% to J$854.452 million year over year. The company’s current assets closed the period at J$700.076 million, with cash balance of J$46.317 million and short-term investments at J$140.009 million. The company has proactively managed its inventory levels to navigate ongoing supply chain disruptions in the region.
Despite the challenges posed by the fluctuating economic environment, CFF remains focused on its forward-looking strategies. The company continues to address key risks, including currency risk and supply chain disruptions, through innovative approaches such as maintaining foreign exchange reserves and diversifying revenue sources.
“We are confident in our ability to overcome challenges and leverage opportunities in the marketplace. Our commitment to quality, innovation, and strategic expansion will continue to drive our success in the coming months and beyond,” Cotterell emphasized.
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