Salada Reports a Slump in Net Profit

• Salada Foods Jamaica Limited reported an unaudited net profit attributable to shareholders of $35.79Mn (EPS: 34¢) for the nine months ended June 30, 2020, which represents a 68.7% (or $78.60Mn) decline when compared to the same period of 2019.
• This performance can be explained by a 16.9% (or $85.25Mn) increase in the cost of sales, an 86.2% (or $4.24Mn) decline in other operating income, as well as an 8.0% (or $3.45Mn) increase in selling expense. This was despite the 6.5% (or $49.91Mn) increase in revenues.
• Earnings were also impacted by net finance costs of $39.73Mn for the review period when compared to a net finance income of $24.36Mn reported in the same period one year prior.
• The stock has fallen 19.2% since the start of 2020 and closed Wednesday's trading session at $27.15 per share. At this price, it currently trades at a P/E of 44.5x earnings, which is above the Main Market Distribution & Manufacturing Average of 22.6x.

(Source: Salada Financials)