Full Steam Ahead - Salada Boasts Strong Q1 Performance

  • After seeing steady gains for the financial year ended September 30, 2024 (FY2024), Salada Foods has witnessed a +63.2% earnings increase for its first quarter ended December 31, 2024 (Q1 2025) relative to Q1 2024, buoyed by the impact of improved distribution efforts which added to revenue growth.
  • Salada’s Q1 revenues increased by 32.8% to J$398.19Mn due to heightened demand across both domestic and export markets. This was supported by the Company’s strategic marketing initiatives and distribution expansion efforts.
  • In FY2024, Salad successfully secured distribution of its flagship brand, Jamaica Mountain Peak, in Trinidad & Tobago with local distributors Alstons Marketing Company (AMCO) Limited. The Mountain Peak Golden Turmeric Latte quickly became a household favourite, contributing approximately 24% of the value of the portfolio in Trinidad & Tobago. This along with exports to Barbados, St. Lucia, Antigua and Barbuda, and other company engagements continued to provide support for revenue growth.
  • Direct costs grew in tandem with revenues with cost of sales rising by 30.6%, slightly below revenue growth, which supported a 37.6% gross profit increase to J$126.22Mn.
  • Meanwhile, operating costs rose 15.7%, which supported a 68.3% increase in operating profits to J$65.74Mn compared to 5.5% to $37.87Mn for Q1 2024. This improvement reflects disciplined cost management and improved operational efficiencies due to ongoing plant modernization efforts.
  • The company also saw a 4.9% uptick in net financing income for Q1 as interest income on funds invested exceeded financing expenses. With the increase in revenues, controlled costs and the uptick in net financing income, Salada’s Q1 total comprehensive income increased by (+63.2%) to J$50.40Mn. 
  • At the close of the stock market on February 20, 2025, Salada’s share price stood at $3.26, implying a P/E ratio of 16.40x, which is above the Main Market Distribution & Manufacturing Average of 14.05x.

(Sources: JSE & NCBCM Research)