New ingredients boost CFF Q1 sales
Special orders, along with the roll-out of a new ingredients portfolio, were key drivers of revenue growth for Caribbean Flavours and Fragrances Limited (CFF), a subsidiary of Derrimon Group, during the first quarter ended March 31, 2025.
As a leading supplier of flavourings and fragrances used by manufacturers in the food and cosmetics industries, the company reported a strong performance, with quarterly revenues rising to $226.4 million — almost 21 per cent above the previous year. This, as profit swelled almost three-fold or over 175 per cent to total $35.6 million.
“The growth in the overall portfolio is a function of continuous inroads made with several local and regional manufacturers as well as the introduction of new products to several customers,” the directors said in a recent shareholders report.
“Over the last two years, CFF has been actively working to develop new products for existing and prospective clients. The company is currently working with manufacturers in Jamaica, Trinidad, and St Lucia on new products and has provided samples to see what formulation works best for each client,” the report continued.
Optimistic about future prospects, CFF revealed it is also engaging with several international partners to support its expansion goals. Following revenues of over $884 million last year, the management team is aiming to secure new deals that could bring the company closer to the $1-billion mark by the end of the current financial year.
“We’ve also been actively working to explore new relationships in Guyana and Trinidad & Tobago while being mindful of the economic situations of both Caricom states. The company will be attending more trade shows and general meetings in the Eastern Caribbean to further entrench the CFF brand and quality to various manufacturers on that side of the region,” the directors noted.
Ten years after its acquisition, the company, which continues to make strong contribution to group, said it remains nimble as it carefully implements measures to address key risks and to counter new headwinds in the global marketplace.
In light of ongoing changes to US trade policy, CFF said it is closely monitoring developments to adopt the most prudent strategies for minimising disruptions in its supply chain.
“This is critical since our suppliers might pass on price adjustments to account for the higher cost of business, a move which could compress our margins,” the company said.
However, with most of its customers predominantly based in the Caribbean, the company said it has not seen any sharp price increases stemming from the US tariffs.
Regarding supply chains, the company said it also continues to diversify its supplier network in order to mitigate some of the experiences of 2024, which at that time weighed on its ability to deliver certain products to market.
“CFF has had a better experience in managing its supply chain risks in the first quarter of 2025,” the directors said.