CFF profit climbs as orders grow in March quarter

Food flavours company Caribbean Flavours and Fragrances Limited, CFF, recorded net profit of $35.55 million for the first quarter of 2025, an increase of 185 per cent over the $12.43 million for the corresponding period in 2024.

Revenue jumped from $187.6 million to $226.4 million, reflecting a near 21 per cent increase.

Meanwhile, total expenses rose by 12.6 per cent to $56.7 million due to increased operational cost in areas such as insurance, security and staff.

The company cited growth in special orders and its new ingredients portfolio for its good performance.

“The growth in the overall portfolio is a function of continuous inroads made with several local and regional manufacturers as well as the introduction of new products to several customers,” said Caribbean Flavours in its earnings report.

Gross profit increased by 48 per cent from $65.1 million to $96.4 million, which reflected the efforts of the company in better managing its cost of inputs, the company said.

Caribbean Flavours provides flavours to the local beverage market, ice-cream makers and the bakery sector, and also exports to Caribbean and Latin American countries and Canada. It is 65 per cent owned by Derrimon Trading Company Limited.

Caribbean Flavours has identified supply chain risk as well as currency risk emanating from changes in the value of the Jamaican dollar relative to major international currencies, as causes for concern in its outlook going forward.

“The company continues to maintain an adequate balance of foreign exchange relative to our Jamaican dollar bank holdings. By maintaining our current position plus exporting more to other markets, we’ve limited some of the risks that come with the depreciation of the local currency,” the company said.

It has also been building out a wider range of suppliers to mitigate some of the 2024 supply chain challenges, which impacted the company’s ability to provide certain products to the market.

Commenting on the United States’ evolving tariff policy, Caribbean Flavours said there were no significant changes yet in the prices of its products but it continues to watch the situation.

“CFF has not experienced a sharp adjustment in prices from these tariffs with most of the company’s customers based in the Caribbean. However, the company is monitoring the ongoing developments carefully to assess the most prudent policy to limit disruptions for the receipt of our inputs. This is critical since our suppliers might pass on price adjustments to account for the higher cost of business, a move which could compress our margins,” Caribbean Flavours said.

It is working on new products that are intended to supply manufacturers in Jamaica, Trinidad & Tobago and St Lucia.

“If these clients find our products to their preferences, the company should be able to sign on some of these clients during the second and third quarter (of 2025) which would bring the company closer to the $1 billion revenue target,” Caribbean Flavours said.

The flavour maker’s annual sales hit a historic high of $900.8 million in 2023, then slid back to $885 million last year.

luke.douglas@gleanerjm.com