Caribbean Flavours and Fragrances Ltd (CFF) has entered the Caribbean’s largest market — the Dominican Republic — where it now supplies manufacturers with its products. Derrick Cotterell, director and company spokesperson, said that the company has also developed new products which are proprietary to the clients for whom they were made.
The new markets widen a client base spread in the US, Canada, Trinidad and Tobago, Grenada, Barbados, St Kitts, Guyana and Jamaica. Cotterell said the company is also looking at entering other areas during 2016 as well. CFF makes flavours for the food, beverage, baking, confectionery and pharmaceutical industries, as well as water-soluble food colours.
It also manufactures and supplies fragrances for household cleaning, cosmetics, deodorants, soaps, haircare and bath products. The company sources essential oils and other raw materials both locally and abroad. CFF’s three-month report for the period ended December 31, 2015 said improved financial results were due to better sourcing of raw materials, while Cotterell emphasised the new markets.
For the three months to December 31, 2015 revenue was $104.98 million, up 31 per cent on the similar quarter in 2014. Sales of flavours, the company said, increased 27. 5 per cent while fragrances saw a 33.6 per cent increase. Overall revenue from exports was up 61.3 per cent, year over year. Net profit came out at $17.27 million, up 59.7 per cent on the $10.81 million earned at December 2014.
Cotterell said increased administrative costs during the quarter were due to the hire of new staff for quality control, also noting that cost of sales might go up or down during each quarter depending on the kind of products produced in a given period. The company is also investing in research and development to meet the changing needs of its client base and new targets, he said. “One has to continue sowing the seeds, so one can be relevant,” he stated.
Cotterell is also chairman and CEO of Derrimon Trading Company Ltd, distributor, which acquired a 49 per cent stake in CFF in August 2014. CFF itself is 15 years old, having started in 2001. It was listed on the junior market of the Jamaica Stock Exchange in 2013.
CFF lists among its clients J Wray, & Nephew, Grace Canning, Pepsi-Cola Jamaica Bottling, Wisynco, Banks Barbados, Trinidad Distillers, St Kitts Distillers, and DDL Guyana. For the six months to December 31, 2015, revenue for the company was $192.4 million, up 34 per cent compared to $143.5 million for the similar period in 2014.
Net profit was $37.28 million, up 73 per cent on $21.63 million earned for the six-month period in 2014. Earnings per share for the six months was 41 cents compared to 24 cents the year before.