May 13, 2021
Salada Foods Jamaica Limited (SALF), recorded a 3% increase in turnover for the six months to close at $579.30 million (2020: $562.78 million). Management stated, “Exports, which accounted for 22% of revenue for the period, continued to perform well, especially in the New York Tri-State region and in South Florida.” As for the second quarter, revenue amounted to $352.94 million (2020: $274.32 million), a 29% increase.
Cost of sales for the period under review increased by 0.1% to close at $411.10 million relative to $410.63 million in 2020. As such, gross profit amounted to $168.20 million, an 11% increase year over year from the $152.15 million booked in the prior corresponding period. Gross profit for the second quarter rose 27% to close at $110.49 million (2020: $86.87 million).
Other operating income for the six months amounted to $606,000 (2020: $606,000)
Administrative expenses fell by 3% to $65.48 million for the six months ended March 31, 2021 (2020: $67.17 million). Also, selling and promotional expenses fell 32% from $33.32 million in 2020 to $22.62 million for the six months ended March 31, 2021.
Consequently, this resulted in an operating profit of $80.70 million, a 54% increase when compared with the $52.27 million reported for the corresponding six months in the prior year. Operating profit for the quarter recorded a 92% increase to $64.23 million (2020: $33.52 million).
The Company reported net finance income of $6.00 million for the period, this compares to net finance cost of $36.11 for the same period in 2020. While, for the quarter, net finance income closed at $4.74 million versus net finance cost of $24.59 million reported in the prior comparable period.
Profit before taxation rose by 437% to $86.69 million versus $16.16 million booked for the previous year’s corresponding period. For the quarter, profit before taxation grew 673% to close at $68.97 million (2020: $8.93 million).
Taxation expense for the six months was $22.22 million (2020: $4.45 million).
Consequently, net profit for the six months went up 451%, from $11.70 million in 2020 to $64.48 million in 2021. As for the quarter net profit increased 718% from $6.28 million booked in 2020 to $51.37 million year to date.
Net profit attributable to shareholders for the six months ended March 31, 2021, amounted to $64.48 million relative to $11.87 million twelve months earlier. Profit attributable to shareholders for the quarter amounted to $51.37 million (2020: $6.38 million).
Earnings per share for the six months amounted to $0.06 (2020: $0.01). The EPS for the second quarter was $0.05 (2020: $0.01). The trailing twelve-month EPS amounted to $0.16. The number of shares used in our calculations are 1,038,832,900 units. SALF stock price closed the trading period on May 13, 2021 at a price of $7.03 with a corresponding P/E of 44.78 times.
SALF noted, “Disruption in the global supply chain due to the pandemic and the devaluation of the Jamaican dollar are concerning. Salada continues to monitor these and deploy internal risk mitigating strategies.”
Balance Sheet at a Glance:
As at March 31, 2021, total assets increased by 4% to $1.19 billion (2020: $1.15 billion). Notably, receivables increased 51% to close at $259.72 million (2020: $172.54 million), while investments rose 37% to $134.53 million (2020: $98.09 million).
Shareholders’ equity as at March 31, 2021 amounted to $969.66 million (2020: $954.04 million) resulting in a book value per share of $0.93 (2020: $0.92).
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