CTFA Annual Report 2020

Despite the challenges faced as a result of the COVID-19 pandemic, 2020 was a year with exceptional changes which brought new perspectives to light. And as a result, the CTFA will continue to invest back into the organisation for the benefit of the 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. During 2020 and under unforeseen circumstances, management was able to react and apply certain measures to ensure the continuation of business activities for the Association and met the 2020 approved budget, reporting a surplus. The Association was able to continue training sessions on a virtual platform which encouraged more companies from all over South Africa to engage as well. The result of initiating the virtual training provided the Association opportunities to interact with members on a more integrated level. Income was generated mainly from membership, which grew by 3% over the prior year. The growth was the result of members maintaining good structure before the pandemic was declared a National state of Emergency and Lockdown. A total of 16 new members joined CTFA bringing the total membership up to 134 companies. Interest received from investments generated a 10% decrease versus the previous year; the result of a global economy in distress due to the pandemic. The Association ended the financial year above budget and in a surplus of R1 212 810. Although the budget was met and a surplus reflected, a decrease of R138 446 occurred in surplus funds for the year. It is always good to provide support back to our members with an early settlement offer and a total of 68 members enjoyed this refund benefit during the 2020 financial year. Operating expenses reflected a 2% decrease over the prior year, totalling R4 808 205 for 2020 versus R4 900 371 for the 2019 financial year. The decrease mainly highlights the restrictions implemented during lockdown which prevented certain full-time activities that would take place under normal circumstances. Overall, expenses were still well maintained by the Association. 2020 MEMBER CATEGORIES 6% 5% 75% 13% Retail Members 6% Full Members 75% Manufacturing Members 5% Associate Members 13% 8 COSMETIC TOILETRY AND FRAGRANCE ASSOCIATION OF SOUTH AFRICA