Caribbean Flavours and Fragrances Limited (CFF) is reporting improved revenues of $447.9 million for the first half of 2024, though the company saw a reduction in net profits, largely due to its transition to paying full corporate tax rate.
For the six months ended June 30, 2024, CFF’s revenue grew by 3.66 per cent to $447.9 million, up from $432.1 million in the same period in 2023. Gross profit saw a significant increase of 13.59 per cent, rising to $163.4 million, with gross profit margins improving to 36.48 per cent. CFF attributed this performance to its ability to optimize logistics and procurement, implement effective cost-efficiency strategies, and maintain competitive margins despite global challenges.
“Against the backdrop of a tight labour market and reduced domestic consumption, we are proud of our performance in the first half of 2024. Our dedicated team remains focused on delivering quality products at competitive prices, and we are confident in our ability to meet our growth objectives in the latter half of the year,” said Derrick Cotterell, Chairman and Executive Director of CFF.
Looking ahead, CFF remains committed to its ambitious goal of achieving $1 billion in assets and revenue. “The company plans to expand its presence in key Caribbean markets while introducing new products tailored to evolving consumer needs,” Cotterell noted.
CFF said it is also focusing on enhancing its export capabilities, with a long-term strategy to make exports 30 per cent of its total revenue.
Also, during its half-year, CFF reported that operating expenses increased by 17.38 per cent to $102 million, driven by higher staff, security, and insurance costs. Despite these increases, the company achieved a profit before tax of $68.8 million.
The transition to full taxation at the standard 25 per cent rate, compared to the previous year’s 12.5 per cent rate, resulted in a 12 per cent decline in net profit to $52.8 million. This shift also led to a decrease in earnings per share, which dropped from $0.07 in the same period in 2023 to J$0.06 in the current period.
Meanwhile, CFF’s balance sheet remains robust, with total assets increasing by 4.42 per cent to $892.2 million. Current assets, now at $723.7 million, have significantly contributed to this growth, underscoring the company’s strategic focus on maintaining adequate inventory and effectively fulfilling customer demand.
CFF recently attended the 25th Trade and Investment Convention in Trinidad and Tobago and will participate in additional trade shows in the coming months to drive further growth in its export markets.
