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July 31, 2024

Salada Foods Jamaica Ltd.(SALF)

Unaudited financials for the nine months ended June 30, 2024:

Salada Foods Jamaica Ltd. (SALF) for the nine months ended June 30, 2024, reported a 17% increase in Revenue totaling $1.13 billion compared to $965.19 million in the corresponding period last year. Revenue for the third quarter had a 46% increase to close at $405.46 million compared to $276.92 million for the comparable quarter of 2023.

Cost of sales amounted to $768.90 million (2023: $676.49 million), this represents an increase of 14% year over year. Consequently, gross profit increased by 26% to $363.35 million compared to $288.70 million for the nine months ended June 30, 2023. The company booked gross profit of $134.04 million for the third quarter versus $73.13 million reported for the similar quarter of 2023.

Other operating income decreased by 3% to close at $1.91 million (2023: $1.98 million), while Selling and promotional expenses decreased by 17% from $61.04 million in 2023 to $50.48 million in the period under review. Also, administrative expenses for the nine months ended June 30, 2024, amounted to $114.45 million, a 3% increase relative to $111.26 million reported in 2023.

Operating Profit for the nine months ended June 30, 2024, amounted to $200.34 million, a 69% increase relative to $118.38 million reported in 2023. Operating Profit for the third quarter amounted to $76.27 million (2023: $21.99 million).

Net finance income totaled $15.91 million a 10% increase from the corresponding period last year. (2023: $14.44 million).

Profit before taxation for the nine months ended June 30, 2024, amounted to $216.24 million, a 63% increase relative to $132.82 million reported in 2023. Profit before taxation for the third quarter amounted to $84.53 million (2023: $32.98 million).

Taxation for the nine months ended June 30, 2024, had a 63% increase to reach $54.09 million (2023: $33.21 million). As such, Net profit for the nine months amounted to $162.16 million, a 63% increase from the $99.62 million reported in 2023. For the third quarter, Net profit was $63.40 million (2023: $24.74 million).

Consequently, Earnings Per Share for the nine months amounted to $0.16 (2023: EPS: $0.10), while Earnings Per Share for the quarter totaled $0.06 (2023: EPS: $0.02). The twelve month trailing EPS was $0.23 and the number of shares used in these calculations was 1,038,832,900.

Notably, SALF’s stock price closed the trading period on June 30, 2024, at a price of $3.70 with a corresponding P/E ratio of 15.86x.

Balance Sheet Highlights

The company’s assets totaled $1.45 billion (2023: $1.30 billion). The increase in total asset base is attributed to an 31% year over year increase in ‘Cash and Cash Equivalents” to $191.41 million, there was also an 8% increase in the company’s “investments” to close at $315.41 million, while “receivables’ grew 33% to $309.46 million.

Shareholder’s equity was $1.19 billion (2023: $1.09 billion), representing a book value per share of $1.15 (2023: $1.05). The increase in total shareholders’ equity is ascribed to a 7% year over year increase in the “retaining earnings” account.

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