Carib Flavours profit up – Now BUY RATED

Ingredients input into Caribbean Flavours products

Ingredients input into Caribbean Flavours products

Focusing on the end results of Caribbean Flavours & Fragrances for the year to June 2015 with increased profit of 22 percent over 2014 would lead one to look elsewhere, but that would be a big error.
For while the nine months to March showed profit down marginally to $39 million from $40 million, profit for the March quarter was up 20 percent over March 2014 quarter but the June quarter increased by 143 percent to $18.77 million from just $7.6 million for June 2014.
The future much brighter that the past year, for the company that manufactures and distributes flavours mainly for the beverage, baking and confectionery industries and also sells food colouring and fragrances. The company audited financial statements show profit of $58 million or 64 cents per share versus $47 million or 56 cents in 2014, from sales that were up to $307 million from $255 million in 2014. It is the performance of revenues that is the most telling message to flow from the report that points to big improvement in profits to come. Revenues jumped 44 percent in the quarter to reach $96 million the best quarter by far for the financial year. CFF 6-15rAccording to the company’s board, “the economic environment has allowed the company to grow its revenues and profits by securing new markets for fragrances and increasing the volume of sales of flavours to existing and new customers in foreign markets. Based on the outlook for the coming year, it is expected that the company will continue to improve its profits whilst increasing its market share in the domestic and overseas markets”.
IC Insider has projected profits for 2016 at $100 million or $1.10 per share with increased sales and improving profit margins.
Net asset value is $2.25 per share, with the price of the stock on the junior market trading at $2.55 for a PE of just over 3 and 2.3 based on the forecast, indicative of much upside price potential.

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