Salada Foods Jamaica Ltd.(SALF)

Unaudited financials for the six months ended March 31, 2024:

Salada Foods Jamaica Ltd. (SALF) reported a 6% increase in turnover to $726.78 million for the six months ended March 31, 2024, compared to $688.26 million for the corresponding period last year. Turnover for the second quarter ending March 31, 2024, was 8% higher at $426.89 million compared to $394.22 million for the comparable quarter of 2023.

The cost of sales for the six months ended March 31, 2024, amounted to $497.47 million (2023: $472.69 million), an increase of 5% year over year. Consequently, gross profit increased by 6% to $229.31 million, compared to $215.57 million for the six months ended March 31, 2023. The company booked a gross profit of $137.60 million for the second quarter versus $122.09 million reported for the similar quarter of 2023.

Other operating income decreased by 29% to close at $786,000 (2023: $1.10 million), while Selling and promotional expenses decreased by 28% from $44.38 million in 2023 to $31.88 million in the period under review. As a result, administrative expenses for the six months that ended March 31, 2024, amounted to $74.15 million, a 2% decrease relative to $75.91 million reported in the corresponding period of 2023.

Operating Profit for the six months ended March 31, 2024, amounted to $124.07 million, a 29% increase relative to $96.38 million reported in 2023. Operating Profit for the second quarter amounted to $86.20 million (2023: $60.48 million). Net finance income totalled $7.65 million, a 121% increase from last year’s corresponding period (2023: $3.46 million).

Profit before taxation for the six months ended March 31, 2024, amounted to $131.72 million, a 32% increase relative to $99.84 million reported in 2023. Profit before taxation for the second quarter amounted to $90.54 million (2023: $63.35 million).

Salada Foods Jamaica Ltd. (SALF) demonstrated strong profitability with a 32% increase in net profit for the six months ended March 31, 2024, amounting to $98.76 million, compared to $74.88 million reported in 2023. Taxation for the six months ended March 31, 2024, increased by 32% to reach $32.95 million (2023: $24.96 million). For the second quarter, Net Profit was $67.88 million (2023: $47.51 million).

Consequently, Earnings Per Share for the six months amounted to $0.10 (2023: EPS: $0.07), while Earnings Per Share for the quarter totalled $0.07 (2023: EPS: $0.05). The twelve-month trailing EPS was $0.20, and the number of shares used in these calculations was 1,038,832,900.

SALF’s stock price closed the trading period on May 08, 2024, for $3.93, with a corresponding P/E ratio of 20.05x.

Balance Sheet Highlights

The company’s assets totalled $1.42 billion (2023: $1.32 billion). The increase in total assets was attributed to an increase in Cash and Cash Equivalents by 23% YoY, Investments, which increased 13% YoY, and Receivables, which also increased 14% YoY.

Salada Foods Jamaica Ltd. (SALF) has continued to strengthen its financial position, with shareholder’s equity reaching $1.13 billion (2023: $1.06 billion), representing a book value per share of $1.09 (2023: $1.02). This equity increase is a result of a 7% YoY increase in Retained Earnings, underscoring the company’s unwavering commitment to delivering value to its shareholders.

Disclaimer:

Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.