February 15, 2021
Salada Foods Jamaica Limited (SALF), for the quarter ended December 31, 2020, recorded a 22% decrease in turnover to $226.36 million (2019: $288.46 million).
Cost of sales for the period decreased by 24% to close the quarter at $168.65 million relative to $223.18 million in 2019. As such, gross profit for the quarter amounted $57.71 million, a 12% decline year over year from the $65.28 million booked in 2019.
Other operating income for the first three months amounted to $491,000, 2% down from $501,000 booked in 2019.
Administrative expenses for the quarter recorded a decline of 6% to $29.60 million (2019: $31.40 million), while selling and promotional expenses decreased 22% from $15.63 million in 2019 to $12.14 million.
Consequently, this resulted in an operating profit of $16.47 million, this compares with the operating profit of $18.75 million reported for the corresponding quarter for prior year.
The Company reported net finance income of $1.25 million for the quarter; this compares to the net finance cost of $11.52 million documented for the same period in 2019.
Profit before taxation amounted to $17.72 million for the first quarter ended December 31, 2020, 145% increase from $7.23 million booked for the prior corresponding quarter.
Taxes for the period under review amounted to $4.62 million, up from $1.81 million booked in 2019. As such, net profit totaled $13.10 million for the period, relative to net profit of $5.42 million reported in 2019. Net profit attributable to shareholders amount to $13.10 million (2019: $5.49 million)
Earnings per stock (EPS) unit for the quarter amounted to $0.13 (2019: $0.05). The trailing twelve months EPS is $1.14. The number of shares used in the calculations is 103,883,290. SALF last traded on February 15, 2021 at $40.00 with a corresponding P/E of 35.19 times.
The company noted that “the Company’s production capabilities have been adversely affected by the delay in obtaining permits from JACRA resulting in our inability to produce some of our flagship products which are being demanded by the domestic market. We expect that by the second quarter, having now received the requisite permits this situation will normalize. Exports continue to perform showing a 1.3% increase when compared to last year.”
Balance Sheet at a Glance:
As at December 31, 2020, total assets declined by 10% to $1.04 billion (2019: $1.16 billion). The overall movement in the asset base stemmed from a decline in Cash and cash equivalents to $144.26 million from $217.58 million reported as at December 31, 2019.
Shareholders equity as at December 31, 2020, amounted to $918.29 million (2019: $947.65 million) resulting in a book value per share of $8.84 (2019: $9.12).
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