February 7, 2022
Salada Foods Jamaica Limited (SALF), for the quarter ended December 31, 2021, recorded a 28% increase in turnover to $289.35 million (2020: $226.36 million). SALF noted, “The company maintained strong domestic and export sales across its diverse range of products resulting in increases of 46% and 8% respectively over the prior year. Revenue from export sales, coupled with the devaluation of the Jamaican dollar, resulted in a 768% increase in foreign exchange gains of $11.73 million versus foreign exchange loss of $1.76 million from the previous corresponding period.”
Cost of sales for the period rose by 17% to close the quarter at $197.23 million relative to $168.65 million in 2020. As such, gross profit for the quarter amounted $92.12 million, a 60% increase year over year from the $57.71 million booked in 2020.
Other operating income for the first three months amounted to $466,000, 5% down from $491,000 booked in 2020.
Administrative expenses for the quarter recorded rose by 13% to $33.35 million (2020: $29.60 million), while selling and promotional expenses rose 32% from $12.14 million in 2020 to $16.07 million for the period under review.
Consequently, this resulted in an operating profit of $43.16 million, this compares with the operating profit of $16.47 million reported for the corresponding quarter for prior year.
The Company reported net finance income of $12.73 million for the quarter; this compares to the net finance income of $1.25 million documented for the same period in 2020.
Profit before taxation amounted to $55.89 million for the first quarter ended December 31, 2021, 215% increase from $17.72 million booked for the prior corresponding quarter.
Taxes for the period under review amounted to $13.97 million, up from $4.62 million booked in 2020. As such, net profit totaled $41.92 million for the period, relative to net profit of $13.11 million reported in 2020. Net profit attributable to shareholders amount to $41.92 million (2020: $13.10 million)
Earnings per stock (EPS) unit for the quarter amounted to $0.040 (2020: $0.013). The trailing twelve months EPS is $0.179. The number of shares used in the calculations is 1,038,832,900. SALF last traded on February 7, 2022 at $6.86 with a corresponding P/E of 38.39 times.
Balance Sheet at a Glance:
As at December 31, 2021, total assets rose by 19% to $1.24 billion (2020: $1.04 billion). The overall movement in the asset base stemmed from an increase in Inventories which totaled to $578.41 million from $345.73 million reported as at December 31, 2020.
Shareholders equity as at December 31, 2021, amounted to $989.32 million (2020: $918.29 million) resulting in a book value per share of $0.95 (2020: $0.88).
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