Revenues up by 28 per cent to end 2020 at $593.75 million

Junior market company, Caribbean Flavours and Fragrances has performed admirably in 2020 with net profits jumping by almost 200 per cent to end the year at $82.30 million.

This is up from the $31.50 million net profits made for 2019. For the December quarter, net profit amounted to $24.22 million, versus a loss of $16.16 million for the comparable period in December 2019.

Profit from operations closed 2020 at $72.31 million, up from the 2019 posting of $28.10 million. As for the fourth quarter, operating profit closed the period at $17.44 million, versus a loss of $19.12 million in 2019.

Finance income for the year amounted to $24.21 million, up from the $8.71 million posted in 2019. As such, pre-tax profit amounted to $96.51 million, more than doubling the 2019 amount of $36.81 million.

After incurring taxes of $14.21 million compared with $5.31 million in 2019, net profit for 2020 amounted to $82.30. Revenues for the year totalled $593.75 million, up from $462.46 million booked 2019.

For the December quarter revenue rose by 36 per cent to $141.85 million compared to the $104.02 million posted for the comparable period in 2019. Cost of sales amounted to $403.17 million (2019: $323.30 million), resulting in a gross profit of $190.58 million (2019: $139.16 million).

As for the fourth quarter, gross profit totalled $46.71 million (2019: $14.42 million). Unrealised gains on investment valued at fair value for the 12-month period amounted to $2.86 million (2019: nil).

Total expenses inching up

Caribbean Flavours and Fragrances recorded a year-over-year increase in total expenses to $121.13 million, which is up nine per cent from $111.06 million booked in 2019. Total expenses comprised of selling and distribution cost which totalled $6.20 million (2019: $3.40 million), whereas administrative expenses for the period closed at $114.94 million (2019: $107.66 million).

Total expenses during the quarter amounted to $32.13 million, four per cent down from $33.54 million booked for the 2019 fourth quarter. The earnings per share (EPS) for the year amounted to $0.09 (2019: 0.035), while for the quarter, EPS amounted to $0.03 (2019: LPS $0.02).

As at yesterday March 01, 2021 the stock traded at $1.96 with a corresponding P/E of 21.41 times. Caribbean Flavours and Fragrances as at December 31, 2020, recorded total assets of $635.02 million, an increase of 13 per cent when compared to $563.22 million for the prior year.

Cash and Cash Equivalent largely contributed to this growth, closing the period at $295.43 million (2019: $225.65 million). Total Shareholders’ Equity as at December 2020 closed at $490 million, an improvement of 14 per cent from $430.18 million last year.