Caribbean Flavours stock split set for October 1

Caribbean Flavours stock split set for October 1

BY DURRANT PATE
Observer business reporter

Sunday, September 06, 2020

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The way is being cleared for Caribbean Flavours and Fragrances Limited to effect a 10 to one stock split as of the close of business on October 1, 2020.

The stock split is being effected to bolster trading in Caribbean Flavours and Fragrances shares on the Jamaica Stock Exchange (JSE), where the company is listed. A stock split is a corporate action by a company's board of directors that increases the number of outstanding shares, which is executed by dividing each share into multiple ones—diminishing its stock price.

At a special meeting last Friday, August 27, the board of Caribbean Flavours and Fragrances approved two resolutions to be voted on at the company's annual general meeting, slated for Friday, September 25, 2020 at The Knutsford Court Hotel.

The resolutions seek to facilitate the 10 to one stock split.

The first resolution seeks to increase Caribbean Flavours and Fragrances authorised share capital from 91.45 million shares to 2.6 billion shares by the creation of an additional 2.5 billion ordinary shares.

The second resolution calls for each of the issued ordinary shares in the company to be sub-divided into 10 ordinary shares with effect from the close of business on October 1, 2020.

This will result in the total issued shares in Caribbean Flavours and Fragrances being increased from 89.92 million shares to 899.2 million shares. Caribbean Flavours and Fragrances, which began operating in 2001 and became listed on the JSE in 2013, provides flavours and fragrances to the major beverage manufacturers in Jamaica.

In addition, the company, which is a subsidiary of the Derrimon Group of Companies, exports flavours and fragrances to the Caribbean and Canada, also provides fragrances to local manufacturers of household and personal care products.

Caribbean Flavours and Fragrances gross profit for the six-month period ended June 30, 2020 was $98.75 million, an increase of $14.25 million over the $85.5 million reported for the same period in 2019. Gross profit for the June quarter was $50.91 million, representing a 7.8 per cent increase when compared with the $47.2 million achieved for the similar period in 2019.

Sales generated for the six-month period ended June 30, 2020 was $310.59 million or $84.26 million over the $226.33 million recorded for the said period in 2019. Sales for the June quarter was $161.19 million, representing an increase of $47.45 million from the $113.74 million recorded for June quarter in 2019.


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