February 21, 2018
Salada Foods Limited (SALF) Annual General Meeting (AGM), was held today February 21, 2018 at the company’s premises, with a tour of its plant. Chairman, Patrick Williams, reiterated salada’s strategy of becoming more efficient by fully utilizing the excess capacity of it plant which he said is over sixty years. However, the company has no plans of a complete overhaul of its plant. Instead, Willilams plans to add new technology to the firm’s current operations if needed. Salada for the last financial year was able to increase its total assets turnover ratio from 0.81 ( 2016) to 0.91 (2017). Despite this improvement, return on equity (ROE) remained flat year over year at 9%.
Notably, SALF recorded an increase in first quarter revenues ended December 31, 2017, as the company doubled efforts to expand overseas. This led to a 100% increase in export sales for the quarter. Salada Foods Ltd. recently got certification in level 2 SOF. This certification is held by only five other local firms. As mention by Chairman, Patrick Williams, “this certification will allow the company to expand in new markets in United States and Europe.”
To increase efficiency, Salada intends to add to its product mix. The company exhibited a range of new products in its pipeline to be release into market soon. SALF’s strategy going forward will target a younger market, the millennials, the Chairman stated. As such, more resources and marketing efforts will be required to execute the strategy.
Taking note of suggestions made by shareholders last year, the Chairman noted the company is considering increasing the frequency of it dividends payment in the coming year. Mr. Williams claimed the marginal fall in net income for 2017 when compare to 2016 was due to write down from property sales and obsolete inventory. Additionally, the company discontinued its pension plan which cost the firm over $38 million for 2017.
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