CARIBBEAN Flavours and Fragrances (CFF) saw its second quarter profit slip as a result of higher administrative expenses.

The newcomer to the Jamaica Stock Exchange (JSE), posted $11 million in net profit for the three months ended December 31, 2013, down from $19.1 million in the comparative period in the prior year.

Revenue, however, grew by 10 per cent during the quarter under review, up from $57.8 million in the prior year to $63.7 million in the three months ended December 31, 2013.

Cost of sales was $37.9 million for the review period, 15 per cent less than the corresponding period in the prior year. But administrative expenses significantly increased by 83 per cent, from $8.7 million in the prior year to $16 million during the review period.

CFF also manufactures and supplies fragrances for household cleaning, body care, and aromatherapy and air refresher industries.

It makes and distributes over 25 flavours and watersoluble colours for the food, beverage, baking, confectionery and pharmaceutical industries. It posted $14.8 million for other income for the three months ended December 2012, which represents the profit on the disposal of the company’s land and building.

The company raised $50.6 million following an initial public offering (IPO) last year, CFF indicated it would build a chill room that will stock juices and install redundancies for equipment to reduce downtime and maintain product quality. Moreover, Anand James, CEO of the company noted that CFF would add a new revenue stream — combining juices and flavours and sell to its customers.

CFF supplies Caribbean food and beverage manufacturers, in Jamaica, Trinidad and Tobago, Grenada, Barbados, St Kitts, Guyana, USA and Canada, including J Wray & Nephew, Grace Canning, Pepsi Cola Jamaica Bottling, Wisynco, Nestle JMP, Banks distillers in Barbados, Trinidad and St Kitts, as well as DDL Guyana.