Caribbean Flavours traded on the Junior Market at $20.
Profit at Caribbean Flavours climbed 40 percent in the quarter to September this year to $25 million from a rise of 21 percent in sales to $120 million, up from $100 million in 2017 and an increase of 137 percent in other revenues to $5 million.
Improvement in profit margin in the in the quarter to 37 percent from 36 percent in the 2017 is also a contributing factor in the improved profit. The effect, gross operating profit rose 23 percent in the quarter to $45 million from $36 million.
Other operating and administrative expenses rose 22 percent to $24 million from $19.4 million in 2017.
Earnings per share came out at 28 cents, for the 2018 fiscal year earnings per share was 97 cents. The company should end the fiscal year to June 2019 around $1.50.
Growth in profit has not been always robust even though it has been positive. Profit before Taxation grew a mere 1.59 percent in 2014, 12.75 percent in 2015, a more respectful 28.34 percent in 2016, a reduced rate of 11.89 percent in 2017 and even less growth of 5.22 percent in 2018.
“The company expects that there will be improvement in our performance in the next period as we
Caribbean Flavours’ produce inputs.
expect sales of Flarorfit, our sugar reduction solution to gain traction,” Chairman of the board Howard Mitchell, stated in his report accompanying the quarterly.
Gross cash flow brought in $26 million. Addition to fixed assets used up $3.5 million and $19 million was used to pay dividends. Cash and invested funds amount to $220 million. At the end of the quarter, shareholders’ equity stands at $424 million with borrowings at just $9 million. Net current assets ended the period at $309 million well over Payables of just $30 million.
The stock traded at $20 on the Junior Market of the Jamaica Stock Exchange with a PE ratio of 13 times 2019 earnings. The stock is ripe for at least a 5 for 1 stock split, with limited supply and just 90 million units issued.
