Salada Limited – (SALF) Annual General Meeting Highlights:
Salada Foods aims to increase its exports to atleast 25% of total sales:
Salada Foods Jamaica Ltd. (SALF) held its Annual General Meeting today at the Knutsford Court Hotel at 3:00PM Feb 16, 2017. At the start of the meeting, Chairman, Patrick Williams introduced the Board of Directors present at the meeting and thanked the audience for their attendance. The company’s new General Manager Dianna Blake-Bennett was introduced before the presentation on the company’s performance in the 2016 financial year by the Chairman. Mr. Williams’ presentation comprised of the key performance highlights for the 2015 Financial year:
· There was a reported 15% increase in sales with sales totaling $761.74 million in FY2016 compared to $660.44 million in the FY2015. The revenue increase can be attributed to the improved product quality and distribution. The Director however lamented the fact that Export sales represented 17% of total sales for the financial year 2016 a decrease from the 23% reported in 2015 financial year. Increased Non- Current assets increased from $308 million FY2015 to $385 million for FY2016.
· Profit for the year amounted to $68.9 million compared to $31.65 million in the previous year. Mr. Williams indicated that both Mountain Peak Food Processors Limited (MPFP) and Pimora continue to be a drag on the company’s results. Mr. Williams stated, “a plan is now in place to turnaround the fortunes of the loss making subsidiary, Mountain Peak Foods Processors Limited. MPFP is now on a strategic path which we are confident will start bearing fruit by the end of this financial year.” Mr Williams stated that Mountain Peak will become the market and sales arm of SALADA in an attempt to make the company profitable. Mr Williams stated that they expect to see a profit this year however it will not be a large profit.
· Pimora as a subsidiary still faces problems as Mr Williams complained about the lack of shelf space available causing a huge reduction in sales. He stated that they will be exploring the export market to reduce the losses incurred by the Pimora subsidiary. “Although awarded the Jamaica Observer best new product it still hasn’t made its mark in the market” according to Mr. Williams.
· A plan implemented by the management team to accelerate export sales by revamping our overseas distribution efforts through fewer and more effective distributors. It was stated that the company was increasing its efforts to increase export sales. The company will also embark on getting its SQS certification (awarded by the Swiss Accreditation Service) to be completed at the end of August 2017. “This certification will allow the company to expand its exports to Europe” according to Mrs Blake-Bennett.Mrs Blake-Bennett also stated that the company is also in contact with Caribbean airlines to have them serve Salada brand of coffee.
· Regarding product innovation, SALF expects to introduce several new coffee based products in the second half of the fiscal year. “With these products we expect to attract a broader spectrum of consumers and in particular the younger demographics” General Manager, Dianna Blake-Bennett noted.
Going forward the Chairman noted, “Salada’s structures and management team have been strengthened, there is a strategic plan in place and we are ready to see success in the area of export.”