Jamaican manufacturing company Salada Foods weathered a challenging December 2022 quarter in which net profit tumbled whilst eking out a marginal improvement in revenue.
Net profit closed the quarter down 35 per cent to J$27.37 million compared to the J$43.16 million made during the corresponding period in 2021. Operating profit went down 17 per cent to J$35.9 million as against the J$43.16 million booked in 2021.
This decline was primarily due to sales and promotional expenses increasing by 24 per cent moving from $16.1 million in 2021 to J$21.2 million for the quarter under review, as core consumer engagement activities resumed stemming from the widespread relaxation of COVID-19 protocols. The company also pursued targeted digital marketing strategies designed to retain and grow its consumer base in main export markets.
Revenue for the period increased by two per cent to J$294.04 million, up from the J$289.35 million recorded in the same period in 2021.
Declines in interest and foreign exchange gains
There was a big 95 per cent fall-off in interest and foreign exchange gains, with J$592,000 being reported as compared to the J$12,73 million made during the same period in 2021. Earnings per stock unit for the period came out at J$0.03, down from J$0.04 in 2021.
As at December 31, 2022, total assets declined by six per cent to J$1.17 billion (2021: J$1.24 billion). The overall movement in the asset base stemmed from a decrease in ‘Cash and Cash Equivalent’, which totalled to J$120.26 million from J$175.76 million reported as at December 31, 2021.
Shareholders’ equity, as at December 31, 2021, amounted to J$1.02 billion (2021: J$989.32 million) resulting in a book value per share of J$0.98 (2021: J$0.85).
During the reporting period, in recognition of corporate sustainability goals, Salada expanded its partnership with Recycling Partners of Jamaica, supported Food for the Poor’s home-feeding programme island-wide and sponsored the annual Pink Run in aid of Jamaica Reach to Recovery.