SALF reports six-month net profit attr. to shareholders of $74.88 million

May 12, 2023


Salada Foods Jamaica Limited (SALF) for the six months ended March 31, 2023:

Revenue increased 8% to $688.26 million (2022: $635.27 million). For the quarter, revenue increased 14% to $394.22 million (2022: $345.92 million).

Cost of sales increased 8% to $472.69 million (2022: $436.14 million). Consequently, gross profit increased 8% to $215.57 million (2022: $199.13 million). For the quarter, gross profit increased 14% to $122.09 million (2022: $107.01 million).

Other operating income increased 133% to $1.10 million (2022: $472,000) while total operating expenses increased 19% to $75.91 million (2022: $70.67 million) with selling and promotional expenses contributing the most with a 44% increase to $44.38 million (2022: $30.79 million). This resulted as the Company aggressively supported expansion into new markets, pursued innovative strategies and product development and diversification.

Operating profit declined 2% to $96.39 million (2022: $98.14 million). For the quarter, operating profit increased 10% to $60.48 million (2022: $54.98 million).

Net finance income declined 70% to $3.46 million (2022: $11.51 million).

Profit before taxation declined 9% to $99.84 million (2022: $109.66 million).

Taxation charges declined 9% to $24.96 million (2022: $27.41 million). As a result, net profit declined 9% to $74.88 million (2022: $82.24 million). For the quarter, net profit increased 18% to $47.51 million (2022: $40.32 million).

Net profit attributable to shareholders declined 9% to $74.88 million (2022: $82.24 million).

Earnings per share (EPS) amounted to $0.07 (2022: $0.08). For the quarter, EPS amounted to $0.05 (2022: $0.04). The trailing twelve-month EPS amounted to $0.16. The number of shares used in the calculations is 1,038,832,900. SALF’s stock price closed the trading period on May 11, 2023 at $3.65 with a corresponding P/E ratio of 22.56x.

Management noted that the inconsistent supply of local green coffee beans, a crucial raw ingredient, continues to hinder industrial productivity and operational effectiveness at the Company.

Balance Sheet Highlights:

Total assets as at March 31, 2023 declined 7% to $1.32 billion (2022: $1.23 billion). This movement was primarily due to a 145% increase in ‘Investments’ to $244.72 million (2022: $99.79 million).

Shareholders’ equity as at March 31, 2023 increased 3% to $1.06 billion (2022: $1.03 billion) resulting in a book value per share of $1.02 (2022: $0.99).



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