CARIBBEAN Flavours and Fragrances (CFF) has reported a record financial year in 2023, driven by its expansion into new bakery and savoury solutions. The company aims to boost Caribbean exports in 2024, buoyed by its recent Safe Quality Food (SQF) certification.

“We are SQF, and that allows us to export into anywhere, any country in the world,” said Derrick Cotterell, managing director of Caribbean Flavours and Fragrances, during the company’s annual general meeting held Wednesday at the Terra Nova Hotel in St Andrew.

Cotterell noted that CFF achieved one of the highest SQF grades in Jamaica, positioning the company to set ambitious financial goals for the current year.

“We are committed to expanding our export market with the goal of deriving 50 per cent of our revenues from exports,” announced Chairman Carlton Samuels though he didn’t give a timeline for this to happen.

CFF is also expanding its product line to include additional ingredients used in beverage production. The company, which initially focused on flavourings, aims to provide clients with a comprehensive range of products necessary to create their desired beverages. By doing so, CFF seeks to become a one-stop shop for its clients, reducing the need for external sourcing. No plan to change the company’s name has been announced.

“When you come to us and you want a beverage solution, we can give you the full beverage solution. That’s what the industry has moved towards — that we’re not just selling flavours and then you go to an ingredient company to get your other ingredients, but we’re selling you the full package,” said Cotterel.

CFF has been collaborating with the baking industry to develop products beyond flavourings, including natural preservatives and enzymes that extend product shelf life. In a strategic move, CFF has partnered with International Flavours and Fragrances (IFF), a global leader with a portfolio that includes ingredients from Dupont de Nemours, Inc — an American multinational chemical company — among others.

This partnership has enabled CFF to offer a broader range of products to the Jamaican and Caribbean markets. Cotterell announced to shareholders that the company has made significant strides in expanding its customer base and exports. Despite challenges, CFF has gained traction in imports and acquired new customers in 2023, primarily in Trinidad and the Eastern Caribbean. Building on this momentum, the company is going out to secure even more customers this year. Cotterell also revealed that several projects are in the pipeline.

For the 2023 financial year, CFF reports record revenues of $900.81 million, a 16.65 per cent increase over the out-turn from the previous year. This marks the company’s highest revenue to date. Notably, CFF’s gross profit surged by 41.82 per cent to $324.79 million, despite navigating challenges such as supplier price hikes, elevated security costs, and logistical issues.

“You remember how much it was 10 years ago?” Ian Kelly, a director of CFF asked shareholders as he reflected on the company’s growth over the past decade. “It was $92 million,” he answered.

The company’s net profit amounted to $155.80 million, marking a significant 120.27 per cent increase from the previous year. This achievement has been recognised by the board, which has doubled the dividend payment per share to $0.050. According to Kelly, the company’s record-breaking performance can be attributed to strategic investments in human capital, systems, controls, and retooling initiatives. These efforts have yielded substantial returns, driving the company’s growth. Kelly highlighted the significance of investing in employee training, which has contributed to the company’s growth in the 2023 financial year. While costs increased in 2023, primarily due to elevated training expenses, Kelly said it was a necessary cost to keep the company abreast of cutting-edge technology to maintain the company’s competitive edge.

“If you are to retain the best, you have to ensure that they are compensated accordingly,” he stated.

Caribbean Flavours and Fragrances is aiming to boost revenues from $900 million to $1.5 billion within this financial year, driven by its new product portfolio. To achieve this goal, the company is focused on leveraging technology to tap into industry potential. Despite facing challenges, Kelly says the company remains optimistic, emphasising a commitment to diversification and expansion beyond Jamaica’s borders.

“We’re never about staying in Jamaica; we’re all about diversifying. We’re going to use our certification as a catalyst to ensure that we expand beyond our shores and build resilience against some of the shocks that we may face in our economy,” he reassured.