SALF reports 7% decline in year end net profits attributable to shareholders

 

Salada Foods, recorded a 17% increase in turnover for the quarter to $258.94 million (2016: $221.46 million). Salada Foods’ turnover increased by 14% to $871.73 million for the year end compared to $761.74 million booked in the previous year. The company noted that, “overall sales to the domestic market was consistent throughout the year as distribution of our products improved with new channels being accessed. Sales to the trade through our distribution partner  LASCO was $579.69 million ,24% above the prior year.”

Cost of sales for the year increased by 17% to close at $595.48 million relative to $510.09 million for the prior year. As such, gross profit for the year and fourth quarter improved 10% and 2% to $276.25 million (2016: $251.65 million) and $61.18 million (2016: $59.92 million) respectively.

Administrative expenses rose by 18% to $148.86 million (2016: $126.53 million). Selling and promotional expense fell 35% from $50.31 million in 2016 to $32.76 million.

Consequently, this resulted in an operating profit of $80.05 million, this compares with the profit of $74.82 million that was reported for the previous year. Net finance income for the year decreased by 33% to $7.46 million compared to $11.16 million for the same period a year ago. SALF indicated, “finance income was adversely affected as the Jamaican dollar revalued in the last quarter; gain on foreign exchange held, fell by 64.26% when compared to the prior year.”

Net profit before taxation stood at $87.51 million, this compares with the pre-tax profit of $85.97 million booked for the year ended September 30, 2017.

Following taxation of $18.82 million (2016: $17.07 million), net profit for the year ended September 30, 2017 was $68.69 million versus a net profit of $68.90 million booked 2016. Net profit for the quarter fell by 75% closing the quarter at $5.40 million relative to $21.72 million reported the corresponding quarter of 2016.

Net profit attributable to stockholders totalled $69.63 million for the year ended September 30, 2017 compared to $74.84 million recorded for September 2016. SALF noted, “Mountain Peak Food Processors Limited, has commenced its recovery as strategies implemented have been successful.”

Earnings per stock unit for the nine months amounted to $0.67 (2016: $0.72), while the EPS for the quarter amounted to $0.04 (2016: $0.24). The number of shares used in our calculations is 103,883,290. Notably, the stock closed the trading period on November 29, 2017 at a price of $8.81.

The company also indicated, “the year’s performance was relatively strong. The outlook os promising as the company focuses on its strategies for growth.”

 

Balance Sheet at a Glance:

 

As at September 30, 2017, total assets rose by 2% or $15.04 million to $957.48 million. This increase was primarily driven by accounts receivables and cash and cash equivalents which amounted to $192.14 million (2016: $147.20 million) and $146.35 million (2016: $126.47 million) respectively. Accounts receivables grew 31% year over year, while cash and cash equivalent recorded a 16% growth over the same period.

Shareholders’ equity totalled $802.05 million (2016: $776.21 million), resulting in a book value per share of $7.72 (2016: $7.47).

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2017-11-30T16:52:57+00:00