CTFA Annual Report 2019

The Association’s primary focus during the year continued to be lobbying, advocacy and member benefits. The primary source of revenue was generated from fees levied to the member companies. The year under review was a financially successful year for the CTFA, and with sound financial management, the Association met the approved 2019 budget and reported a surplus. This was mainly due to new members joining and training sessions held to benefit members and non- members. The result of initiating the training provided by the Association, created more awareness for existing members and great motivation for new members to become a part of the Association. Income was generated mainly from membership, which grew by 2% over the prior year. The growth is also due to more members joining the Association. A total of 28 new members joined CTFA bringing the total membership up to 153 companies. Interest received from investments also generated a 30% increase versus the previous year. This boded well for the Association in closing the year above budget and in a surplus of R1 414 280. Operating expenses reflected a 6% increase over the prior year, totalling R4 837 359 for 2019 versus R4 530 618 for the 2018 financial year. The increase mainly highlights the preparation of projects such as the Cosmetics Summit that was planned for May 2020 and consultant fees for various industry projects. Overall, expenses were well maintained by the Association. It is always good to provide support back to our members with an early settlement offer and a total of 71 members enjoyed this refund benefit during the 2019 financial year. Despite some challenges faced during the year, 2019 was a year of growth, membership introspection and great teamwork and the CTFA will continue investing back into the organisation for the benefit of members. Watermans have expressed willingness to continue as auditors for the next financial year and a resolution proposing their reappointment will be submitted at the forthcoming Annual General Meeting. FINANCIAL REPORT Lloyd Viljoen | Accounting Services Amongst the Association’s greatest strengths is the unwavering commitment to build and grow our capabilities to ensure members’ loyalty and growth; and as a result, the industry’s future success. We continue to make strategic decisions that position the CTFA as a leader in the regulatory space whilst keeping it financially healthy. COSMETIC TOILETRY AND FRAGRANCE ASSOCIATION OF SOUTH AFRICA 19