The board of Caribbean Flavours and Fragrances Limited (CFF) has advised, through a notice on the Jamaica Stock Exchange, that it will ask shareholders to consider increasing the volume of its ordinary shares from 91,452,000 to 2,600,000,000.
Shareholders will deliberate on this resolution when CFF convenes its annual general meeting on Friday, September 25, 2020, at The Knutsford Court Hotel in New Kingston, Jamaica.
Consequent on that decision, shareholders will thereafter vote on a resolution to split “each of the issued ordinary shares in the capital of the company…into 10 ordinary shares with effect from the close of business on October 1, 2020″.
The stock split will then result in CFF’s total issued share capital increasing from 89,920,033 ordinary shares to 899,200,330 ordinary shares.
For the six-month period ending June 30, 2020, the Jamaican manufacturer reported a year-on-year increase in sales of 37 per increase, or JM$84.26 million more than JM$226.33 reported for January – June 2019.
The company attributed this improved performance to “growth in sales in both the local and overseas markets as well as capitalising on new opportunities as a response to the COVID-19 pandemic”
Net profit before tax for the reference period stood at JM$49.38 million — 22.7 per cent above that reported in 2019.
Among CFF’s strategies to maintain profitability are revenue and expense management. In particular, the company indicated that it is focused on driving the cost of sales down while improving purchasing and logistics costs.
The closing price for CFF shares on the Junior Market for September 1, 2020, was JM$18.45.