SALF reports six months net profit attributable to shareholders of $82.24 million

May 11, 2022

Salada Foods Jamaica Limited (SALF), recorded a 10% increase in turnover for the six months to close at $635.27 million (2021: $579.30 million). Management stated, “Gross Revenue for the half-year was $635.3 million, a 10% increase over the prior year of $579.3 million. By increasing promotional efforts, the Company quickly adapted to the opportunities in a fast-changing market environment brought on by eased COVID-19 restrictions.” As for the second quarter, revenue amounted to $345.92 million (2021: $352.94 million), a 2% decrease.

Cost of sales for the period under review increased by 6% to close at $436.14 million relative to $411.10 million in 2021. As such, gross profit amounted to $199.13 million, an 18% increase year over year from the $168.20 million booked in the prior corresponding period. Gross profit for the second quarter decreased 3% to close at $107.01 million (2021: $110.49 million).

Other operating income for the six months amounted to $472,000 (2021: $606,000)

Administrative expenses fell by 8% to $70.67 million for the six months ended March 31, 2022 (2021: $65.48 million). Also, selling and promotional expenses fell 36% from $22.62 million in 2021 to $30.79 million for the six months ended March 31, 2022.

Consequently, this resulted in an operating profit of $98.14 million, a 22% increase when compared with the $80.70 million reported for the corresponding six months in the prior year. Operating profit for the quarter recorded a 14% decrease to $54.98 million (2021: $64.23 million).

Profit before taxation rose by 26% to $109.66 million versus $86.69 million booked for the previous year’s corresponding period. For the quarter, profit before taxation declined 22% to close at $53.76 million (2021: $68.97 million).

Taxation expense for the six months was $27.41 million (2021: $22.22 million).

Consequently, net profit for the six months went up 28%, from $64.48 million in 2021 to $82.24 million in 2022. As for the quarter net profit decreased 22% from $51.37 million booked in 2021 to $40.32 million year to date.

Net profit attributable to shareholders for the six months ended March 31, 2022, amounted to $82.24 million relative to $64.48 million twelve months earlier. Profit attributable to shareholders for the quarter amounted to $40.32 million (2021: $51.37 million).

Earnings per share for the six months amounted to $0.08 (2021: $0.06). The EPS for the second quarter was $0.04 (2021: $0.05). The trailing twelve-month EPS amounted to $0.17. The number of shares used in our calculations are 1,038,832,900 units. SALF stock price closed the trading period on May 10, 2022 at a price of $6.02 with a corresponding P/E of 35.82 times.

SALF noted, “Global and local supply chain issues, increased raw material costs and general high inflation continue to provide challenges for the Company. However, improved distribution in existing and new markets remains a critical pillar for growth for the Company. Expanding e-commerce and export efforts, including sales on, continue to yield positive results.”

Balance Sheet at a Glance:

As at March 31, 2022, total assets increased by 4% to $1.23 billion (2021: $1.19 billion). Notably, ‘cash and cash equivalents’ rose to $153.30 million (2021: $133.64 million) and inventories increased to $556.16 million (2021: $408.92 million).

Shareholders’ equity as at March 31, 2022 amounted to $1.03 billion (2021: $969.66 million) resulting in a book value per share of $0.99 (2021: $0.93).


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