SALF reports $5.49 million in first quarter net profit attributable to shareholders

February 13, 2020

Salada Foods Jamaica Limited (SALF), for the quarter ended December 31, 2019, recorded a 67% increase in turnover to $288.46 million (2018: $172.34 million). The company stated that, “Revenue improvements were attributed to increased sales in both domestic and export markets.”

Cost of sales for the period increased by 61% to close the quarter at $223.18 million relative to $138.33 million in 2018. As such, gross profit for the quarter amounted $65.28 million, a 92% increase year over year from the $34.01 million booked in 2018. The Company noted, “Increased manufacturing costs attributed to the use of Jamaica Blue Mountain green beans coupled with increased factory maintenances charges in the quarter drove cost of sales upwards reducing profitability.”

Other operating income for the first three months amounted to $501,000 (2018: nil).

Administrative expenses decreased by 12% to $31.40 million (2018: $35.59 million). Selling and promotional expense increased 11% from $14.14 million in 2018 to $15.63 million.

Consequently, this resulted in an operating profit of $18.75 million, this compares with the operating loss of $15.73 million reported for the corresponding quarter for prior year.  Despite the decline in administrative expenses, the company noted that “profitability continues to be impacted by the JACRA cess on green beans, of which $20.71 million was absorbed into production for the quarter.”

The company reported net finance cost of $11.52 million for the quarter; this compares to the net finance cost of $3.63 million for the same period in 2018.

Profit before taxation amounted to $7.23 million for the first quarter ended December 31, 2019. This compares with the pre-tax loss of $19.36 million booked for the prior corresponding quarter. Net profit totaled $5.42 million for the period, relative to net loss of $23.08 million reported in 2018.

Earnings per stock unit for the quarter amounted to $0.05 (2018: LPS $0.22). The trailing EPS is $1.64. The number of shares used in the calculations is 103,883,290. SALF last traded on February 13, 2020 at $32.00.

The company noted that “The outlook to year end remains favourable with the strengthening of our marketing efforts both domestic and overseas markets.”

Balance Sheet at a Glance:

As at December 31, 2019, total assets rose by 12% to $1.16 billion (2018: $1.03 billion). This increase was primarily driven by “Cash and Cash Equivalents” which amounted to $217.58 million (2018: $21.78 million). Inventories increased by 54% to close the quarter at $393.62 million relative to $255.36 reported the prior corresponding period.

Shareholders equity as at December 31, 2019, amounted to $947.65 million (2018: $858.74 million) resulting in a book value per share of $9.12 (2018: $8.27).


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