SALF reports first quarter net profit attributable to shareholders of $27.37 million

February 10, 2023

Salada Foods Jamaica Limited (SALF), for the quarter ended December 31, 2022, recorded a 2% increase in turnover to $294.04 million (2021: $289.35 million).

Cost of sales for the period rose by 2% to close the quarter at $200.56 million relative to $197.23 million in 2021. As such, gross profit for the quarter amounted $93.49 million, a 1% increase year over year from the $92.12 million booked in 2021.

Other operating income for the first three months amounted to $326,000, 30% down from $466,000 booked in 2021.

Administrative expenses for the quarter recorded rose by 10% to $36.74 million (2021: $33.35 million), while selling and promotional expenses rose 32% from $16.07 million in 2021 to $21.16 million for the period under review.

Consequently, this resulted in an operating profit of $35.90 million, this compares with the operating profit of $43.16 million reported for the corresponding quarter of the prior year. SALF noted that the decrease was “primarily due to sales and promotional expenses increasing by 24% from $16.1 million to $21.2 million, as core consumer engagement activities resumed stemming from the widespread relaxation of Covid-19 protocols. The Company also pursued targeted digital marketing strategies designed to retain and grow consumers in main export markets”.

The Company reported net finance income of $592,000 for the quarter; this compares to the net finance income of $12.73 million documented for the same period in 2021.

Profit before taxation amounted to $36.50 million for the first quarter ended December 31, 2022, 35% decrease from $55.89 million booked for the prior corresponding quarter.

Taxes for the period under review amounted to $9.12 million, down from $13.97 million booked in 2021. As such, net profit totaled $27.37 million for the period, relative to net profit of $41.92 million reported in 2021. Net profit attributable to shareholders amount to $27.37 million (2021: $41.92 million).

Earnings per stock (EPS) unit for the quarter amounted to $0.026 (2021: $0.040). The trailing twelve months EPS is $0.155. The number of shares used in the calculations is 1,038,832,900. SALF last traded on February 9, 2023 at $3.97 with a corresponding P/E of 25.64 times. The Company declared a dividend of $0.060 per stock unit, which was paid on December 16, 2022, to shareholders on record as of December 2, 2022.  This payment totalled $62.33 million.

During the reporting period, in recognition of Corporate Sustainability Goals, the Company expanded its partnership with Recycling Partners of Jamaica (RPJ), supported Food for the Poor’s home-feeding programme island wide and sponsored the annual Pink Run in aid of Jamaica Reach to Recovery.

Balance Sheet at a Glance:

As at December 31, 2022, total assets declined by 6% to $1.17 billion (2021: $1.24 billion). The overall movement in the asset base stemmed from a decrease in Cash and Cash Equivalent which totaled to $120.26 million from $175.76 million reported as at December 31, 2021.

Shareholders equity as at December 31, 2021, amounted to $1.02 billion (2021: $989.32 million) resulting in a book value per share of $0.98 (2021: $0.85).


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