Caribbean Flavours price fell 45 cents
For the nine months to March, profit amounted to $40 million versus $48 million in 2013, the latter period was boosted by $15 million gain from sale of fixed asset.
Revenue| Sales was up a strong 34 percent in the quarter to $62.8 million but Gross profit margin declined from 81 percent in the 2013 period to just 65.5 percent in 2014, partially negating the amount that flowed to the bottom line. For the year to March, gross profit margin came out at 68.8 percent versus 61.5 percent and for the full 12 months to March 2013, it was 67.6 percent, while revenue grew 16 percent to $188.6 million.
The company faced rising cost that was not passed on to customers, thus negating growth in profit for the year so far. Administrative cost was up 31 percent in the quarter, and 37.9 percent for the nine months, much faster than the increase in gross profit, that grew by just 18.8 percent in the quarter, and 27.5 percent, for the nine months periods. Nevertheless, earnings per share amounted to 16.6 cents for the quarter and 58 cents for the nine months, to March 2014. The company seems poised to hit earnings of 75 cents per share for the year, making it attractive for some short term gains with the current price a $2.70 at a PE ratio of 3.9 times earnings. The return on average equity is working out at a very high 48 percent per annum while net asset per share is $1.72.
Financials| The balance sheet is in a healthy state with no borrowed funds and current assets of $163 million versus payables of only $11 million and equity of $155 million.
[…] having earned 19 cents per share for the quarter and 43 cents for the nine months, to March 2015. Caribbean Flavours & Fragrances enjoyed a moderate increase of 16 percent in profit for the March 2015 quarter over the similar […]