Caribbean Flavours & Fragrances

10 to 1 stock split for Caribbean Flavours

August 21, 2020 by IC Insider.com

Caribbean Flavours and Fragrances (CFF) is set to split their stock, subject to the approval of shareholders at a meeting to be held to consider the matter.
The company will hold a special board meeting on August 27, to consider the approval of resolutions to increase the authorized share capital and approve Stock Split.

Caribbean Flavours a Derrimon’s subsidiary

Based on the release from the company, the approval by shareholders will result in the authorised share capital moving from just 91.452 million shares to 2,6 billion, by the creation of an additional 2.509 billion shares. Each existing issued share will be subdivided into 10 ordinary shares with effect from the close of business on September 23. The split will result in the total issued shares increasing from 89,920,033 shares to 899,200,330 shares.
The company should consider increasing the authorized share capital to an unlimited amount that will not cost them any more funds in doing so and would give them greater flexibility. CFF recently released quarterly results with revenues rising 42 percent in the June quarter to $161 million, with profit before tax rising 18 percent to $30 and revenues rose 37 percent for the six months to $311 million, with pre-tax profit rising by 23 percent to $49 million.
The stock closed trading on Friday at $14.95 with just two lots of stocks on offer at the close.

Filed Under: Breaking News, Company News, General Business News Tagged With: Caribbean Flavours & Fragrances, Emerging markets, Jamaica Stock Exchange, Jamaican stocks

Profit jumps 40% at Caribbean Flavours

November 26, 2018 by IC Insider.com

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.

Filed Under: Company News, Company Results Tagged With: Caribbean Flavours & Fragrances, Emerging markets, Jamaica Stock Exchange, Jamaican Stock, junior market, Trading Activity

Caribbean Flavour(ing) future profits

November 30, 2015 by IC Insider.com

“With the price of the stock, trading at $2.55 for a PE of just over 3 and 2.3 based on IC Insider’s forecast, (is) indicative of much upside potential,” was how Caribbean Flavours was assessed back in August this year, as the stock was elevated to the BUY RATED ranking after the company released its full year results to June.
In the June posting, IC Insider stated, “The company seems poised to hit earnings of 65 cents per share, for the June 2015 financial year, making it attractive for some short-term gains, with the current price of $2.09, at a PE ratio of 3 times earnings.”
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, the June quarter increased by 143 percent to $18.77 million from just $7.6 million for June 2014.
The company followed up the improved results for the March and June quarters, with another quarter of strong performance to September, with a 51.3 percent increase in net profit to $20.36 million over the $13.46 million recorded for the similar period in 2014. The improved profit flowed from sales for the quarter jumping 38.20 percent to $87.46 million, compared to the $63.29 million recorded for the same period in 2014.

Caribbean Flavours’ produce with ingredients – the stock closed at a new high.

“The improvement to our revenue was primarily driven by increase in the sale of flavours in the domestic market as well as the sale of products to new customers. In addition, there has been a 6 percent year over year increase in the sale of fragrances for the quarter thereby contributing positively to both the revenue and our profitability,” the directors stated in their report to shareholders.
“The gross profit showed an increase of 28.91 percent moving from $25.487 million to $32.856 million as per our first quarter’s performance. The Company will continue to refine and improve our purchasing strategy in order to extract the necessary efficiencies and improve our cost of sales and gross profit.
The company continues to manage its administrative and general expenses within budget and compared to the 2014 quarter, there was only a 4.4 percent increase,” the report went on to state.
The future looks much brighter than 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. In responding to questions posed at the annual general meeting held on Wednesday 25 of November, directors indicated that the strong performance enjoyed in the September quarter continues into the December quarter.
“We have hardly scratched the surface of the potential market” Derrick Cotterell indicated, “we have moved into the Dominican Republic and Canada where there is much potential for growth and with renewed efforts and products the locally Jamaican market as well”. Cotterell stated that they have increased research into new products such as fragrances and this has opened up new opportunities for them. Trinidad, Cuba and Haiti are countries with potential for growth, they indicated but Haiti is said to be a difficult market to break into but they have contacts there that should make it possible. In addition to the focus on research and developments for new products and new customers the company said they were able to source some of its raw material more cheaply than before.
According to the company’s board, in their comments on the 2015 annual results “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 projects profits for 2016 at $99 million or $1.10 per share with increased sales and improving profit margins and $1.50 for the 2017 fiscal year. Company is free of interest bearing debt and has net current assets of $221 million including cashfunds of $103 million.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Caribbean Flavours & Fragrances, Derrick Cotterell, IC Insider’s

Juniors up on Wednesday morning

September 2, 2015 by IC Insider.com

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After trading for 90 minutes of the market’s opening, on Wednesday 17 securities traded with a volume of 1,298,546 units, with 2 stocks declining and 6 rising.
Trading activity resulted in mixed fortune for the indices, with the main market ones falling and the junior market increasing. The JSE Market Index fell 232.01 points to 97,797.55. The JSE All Jamaican Composite index lost 259.32 points to close at 108,250.39 and the JSE combined index declined 20.61 points to end at 101,032.53. The junior market rose 21.88 point to 974.02.
The notable trades are. Cable & Wireless with 765,700 shares at 48 cents, for a gain of 2 cents, Subsequent to 11 am, Caribbean Flavours & Fragrances traded 1,221,984 at $2.70.

Filed Under: JSE Main Market, Stock Market Tagged With: Cable & Wireless, Caribbean Flavours & Fragrances

Carib Flavours profit up – Now BUY RATED

August 29, 2015 by IC Insider.com

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.

According 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.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Caribbean Flavours & Fragrances

Junior market drops 12% from peak

August 25, 2015 by IC Insider.com

Trading finished with 4 stocks declining and 1 gaining out of 12 securities that traded, resulting in 3,952,442 units, valued at $11,099,945 changing hands. The market lost 30.25 points to close at 918.48, having shed 122 points or 12 percent since it peaked at 1,040.59 on August 11.
The August decline is a bit worse than the 10 percent pull back, after it recorded a peak of 934.69 on June 10, to bottom out on July 27. The sharp movement by junior market stocks is characteristic of the market around the release of results going back from the early days of the junior market index. At the close, 4 securities ended with no bids to buy, while 4 had no stocks being offered for sale and 2 stocks closed with bids higher than the last traded prices and 4 with the offers being lower.
Stocks trading are, Access Financial Services traded 1,500 shares to close at $10.50, with a gain of 50 cents at the close the bid was at $11 to buy 1,000 units. The stock has been trading on thin volumes, with support mostly around the $10 region. AMG Packaging closed at $3.95 with 4,000 units changing hands, Caribbean Cream traded 67,000 units to close 20 cents lower at $1.60. Caribbean Flavours traded 10,000 units unchanged at $2.75, Caribbean Producers traded just 3,077 units at $2.72, General Accident Insurance traded 274,062 units with the price closing unchanged at $1.50, Jamaican Teas had 2,000,000 shares trading to close at $3.12, Lasco Distributors closed with 476,042 units trading, ended down 20 cents at $1.60. Lasco Financial ended with 500,000 shares changing hands at $1.63 for a fall of 2 cents, Lasco Manufacturing with 240,261 units changing hands, closed at $1.70, with a fall of 15 cents, Paramount Trading ended with 2,500 units trading unchanged at $6 and Eppley 9.5% preference share ended with 374,000 units changing hands at $6.05.

Filed Under: JSE Junior Market, Stock Market Tagged With: AMG Packaging, Caribbean Flavours & Fragrances, Caribbean Producers (CPJ), Daily Trading, Eppley, General Accident, Jamaican Teas, Lasco, Lasco Distributors, Lasco Financial, Lasco Manufacturing, Paramount Trading

Undervalued Caribbean Flavours

June 18, 2015 by IC Insider.com

The company seems poised to hit earnings of 65 cents per share for the June 2015 financial year, making it attractive for some short-term gains with the current price of $2.09 at a PE ratio of 3 times earnings, 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 period in 2014. The increase was helped by an improvement in gross profit margin that moved from 39.6 percent to 44 percent. Profit came in at $17.3 million for the quarter versus $15 million in the similar period in 2014. For the nine months to March, profit declined slightly from $39.7 million in 2014 to $38.9 million.
Sales were up moderately in the quarter from $62.8 million in 2014 to $67 million. For the nine months to March sales grew 11.7 percent to $210.6 million from $188.6 million but cost of sales rose faster than the growth in revenues from $111.7 million to $133.5 million in the nine months or 18.75 percent. Administrative cost increased 21 percent in the quarter, and just 2 percent for the nine months, vastly better than the high double-digit increase in the prior year. The return on average equity an attractive 33.5 percent per annum. The negative is that for its small size there is limited growth from existing operations.
The balance sheet is in a healthy state with equity of $195 million or $2.17 per share. There are no borrowed funds while current assets is $210 million versus payables of only $16 million.
The principal activity of the company is the manufacture of and distribution of flavours mainly for the beverage, baking and confectionery industries. The company also sells food colouring and fragrances.The stock is listed on the Jamaica Stock Exchange junior market and is recommended as a buy by IC Insider.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Caribbean Flavours & Fragrances, Jamaica Stock Exchange, junior market

Lasco Financial at new high

May 28, 2015 by IC Insider.com

Mayberry buys more Lasco Financial shares on Thursday as the stock traded at an all-time high of $1.68.

Lasco Financial Services traded at a new all- time high of $1.68 during the trading session on Thursday. Fairly heavy trading in the stock within minutes of the close, saw 1,483,076 units changing hands and the price slipping to $1.57 for a new closing high, two days after Mayberry bough 20 percent of the company and after the company reported profits of $190 million or 15.5 cents per share for the year to March. Mayberry bought additional shares for their own account by way of crosses towards the end of trading, leaving no stock on offer at the close.
Trading ended on the Junior Market with 9 securities changing hands, and ended with a total of 1,913,100 units valued at $2,968,161. The JSE Junior Market Index gained 1.68 points to close at 870.40, with the price of 3 stocks advancing and 3 declining and 1 closing at 52 weeks’ high.
At the close of the market, there were 6 stocks with bids higher than their last selling prices and none with lower offers. The junior market ended with 3 securities closing with no bids to buy and 9 securities that had no stocks being offered for sale.
The other stocks trading in the junior market are, Caribbean Cream with 200,000 shares changing hands to close unchanged at $1.10,

Caribbean Flavours & Fragrances finished trading with 3,000 shares to close unchanged at $2, Caribbean Producers with 1,000 shares trading, ended lower by 9 cents at $2.90, General Accident Insurance traded just 100 units at $2.02 and lost 2 cents. Jamaican Teas traded with 25,000 shares changing hands to close 10 cents higher at $3.50, with results released for the company, the supply that was overhanging the market has disappear with only offers between $4 and $5.50 for a total of 50,000 shares in the market. Lasco Distributors traded 44,266 shares, unchanged at $1.60, Lasco Manufacturing traded 148,658 shares as the stock traded lower by 2 cent to $1.25 and Medical Disposables had 8,000 units changing hands at $1.95.

Filed Under: Feature Stories, JSE Junior Market, Stock Market Tagged With: Caribbean Flavours & Fragrances, Caribbean Producers (CPJ), Daily Trading, General Accident, Jamaican Stock, Jamaican Teas, Lasco, Lasco Distributors, Lasco Financial Services, Lasco Manufacturing, Medical Disposables & Supplies

2 stocks trade on junior market

March 23, 2015 by IC Insider.com

< Activity on the Junior Market closed with only 2 securities traded ending with 56,600 units changing hands valued at $93,830. The JSE Junior Market Index gained 0.47 points to close at 705.41, with the price of 1 stock advancing and 1 trading unchanged.
a href=”http://icinsider.com/wp-content/uploads/2015/03/JM-qts-23-3-15.png”> JM qts 23-3-15 At the close, the number of stocks that appear set to rise were more than the numbers trading and more than the ones that appear set to decline, in the end there were 6 stocks with bids higher than their last selling prices and only 2 with offers that were lower. The junior market ended with 4 securities closing with no bids to buy and there were7 securities that had no stocks being offered for sale.
Stocks trading in the junior market are, Caribbean Flavours & Fragrances gaining 6 cents to end at $1.91 as 40,000 shares changed hands and Lasco Financial Services with 16,000 shares ending unchanged at $1.05.