Caribbean Flavours & Fragrances reports profit and export growth
PRODUCTION and distribution company Caribbean Flavours and Fragrances (CFF) has achieved its goal of increasing exports by 47 per cent, the announcement was made during its recent annual general meeting on Monday at the Terra Nova Hotel.
“That is tremendous, especially in a market that has been evolving out of COVID,” said Ian Kelly, chief financial officer of Caribbean Flavours and Fragrances.
The company also recorded increases in its revenues and gross profits for the first quarter of 2023. Revenues jumped from $359 million to $432 million, a 20 per cent jump in revenue for the first half of the year.
“If in six months we would have done $432 [million], that one billion dollar at the end of the year is in sight, and we’re confident that when we are here next year we’ll be speaking not about a million-dollar company but a billion-dollar company, and that’s where we’ll be in 2023,” Kelly said ambitiously.
Gross profits grew by 24.23 per cent to $143.849 million, and net profits grew by 36 per cent to $60.712 million from $44.751 million the previous year. CFF aims to surpass $100 million in net profits this year and broaden its export profile in the coming years. “Many of the things that we said we would have done or that we will be pushing for, we are seeing them materialise within the first six months of the year,” expressed Kelly.
A part of its plans to increase profits and revenues includes the training of staff in their technical skill sets. “In order for us to maintain our SQF [Safe Quality Food] certification or standard, there has to be re-certification, and re-certification comes with a cost. Even though you are incurring costs today, that does not mean you will receive the same benefits in the same financial year, so there’s the timing, and I’m sure that timing impacts profitability this year. But we are confident that, over time, you’re going to see that translate into the bottom line,” Kelly told shareholders.
Shareholders were also surprised by an increase in dividend per share, doubling from $0.25 to $0.5. Kelly explained that the increase was due to the fact that despite the performance of the company, there is no increase in the price of the stock, and when interest rates are high, the stock market is affected. There’s an inverse relationship within a high-interest rate environment.
“Despite the performance that the company continues to produce, we were not seeing that in the price, and the directors thought it fit that hey, if you are enduring in terms of not seeing the movement that you expect to see in the prices, then it would be best for you to be rewarded with an increase in dividends,” announced Kelly.
Without giving away too much information, Kelly also revealed that CFF will be venturing into the production of a new line within the baking industry. “I think there’s a lot of background work being done, and as soon as that starts to be accepted, the solution that we have put forward will be accepted. I’ll tell you guys, this company will be moving even faster from good to great,” he said.