Caribbean Flavours and Fragrances Limited (CFF) has posted an unaudited net profit of JM$24.29 million for the second quarter ended June 30, 2021, a 16.4 per cent decrease over the previous comparative period.
CFF, in its report to shareholders, indicated that during the period under review, its export sales slowed as a result of lower demand for customers in other markets.
It pointed out as well that a shortage of sugar during the first quarter negatively impacted many of its customers’ ability to manufacture and as a direct result, revenue for the first half of the year declined three per cent to JM$301.3 million, when compared with the comparative period in 2020.
Nonetheless, revenues for the second quarter increased by four per cent to JM$167.6 million, largely due to an increased activity in the fragrance business following a noticeable improvement by local manufacturing clients as the Jamaican economy began to reopen during the period, CFF said.
Total expenses rose by 10.19 per cent, which was attributed to the company’s increased selling and promotional expenses to attract new customers and to market products which were developed or enhanced during the novel coronavirus pandemic.
“The fragrance segment is receiving our full attention as we look to diversify more of our business and strengthen the foundation of the company,” CFF said in the quarterly report.
Total assets increased by 5.8 per cent to JM$675 million. The bulk of this growth, CFF indicated, can be attributed to its current assets which closed at JM$570 million.
It pointed out that both our cash and investments remain healthy with a cash balance currently at JM$40 million and short-term investments being JM$260 million. Non-current assets were JM$104.97 million.
Additionally, shareholders’ equity increased by 12.2 per cent to JM$531.2 million, up from the JM$473.4 million reported in the previous corresponding period.
Earnings per share, however, remained flat at $0.03 as at June 30, 2021.
“When we consider that these results were achieved whilst operating in an environment where many businesses were and are still facing extreme difficulty from the pandemic’s side effects, CFF performed credibly,” the company stated.
It added that, as a company that does mainly customised orders for a diversified client base, the change in curfew hours doesn’t directly affect its operations. However, the change affect its clients in the beverage sector whose sales lag without the opening of schools, entertainment, and tourism sectors.