Salada Reports Year-End Bottom Line Growth

• Owing to an increase in revenue, Salada Foods Jamaica Ltd. reported a 41.9% increase in net profit to an audited $156.83Mn (EPS: $0.15) for the year ended September 30, 2021. 
• The company was able to grow revenues by 11.4% for the full year which was partly attributable to the successful introduction of new, non-coffee products, namely the Jamaica Mountain Peak Ginger Turmeric Tea, and continued strong export sales. 
• Lower admin expenses (-7.3%) resulting from lower spending on areas such as audit fees and salaries, and other related costs, also supported the improvement in net profit. 
• The performance was, however, tempered by an increase in selling and promotional expenses. Selling and promotional spending increased by 18.3% to $52.43M in support of new products and shifting market trends from bottles to sachets. The team was also forced to develop more innovative promotional tactics to gain and/or maintain consumer attention, which was also contributed to increased selling and promotional expenses. 
• During the year, Salada was faced with numerous obstacles including the deleterious effects of complying with the Jamaica Agricultural Commodities Authority (JACRA) regulations for a 30% locally grown coffee quota, ongoing supply chain disruptions, and increasing freight costs. However, these negative impacts were mitigated by the use of the built-up inventory of raw materials, and lower-cost beans. 
• Salada Food’s stock price has fallen by 79.1% since the start of the year and closed Wednesday’s trading session at $6.42 per share. At this price, the stock currently trades at a  P/E of 42.8x which is above the main market distribution and manufacturing sector average of 23.4x

(Source: Salada Foods Financials)