Salada Foods Jamaica Reporting A 219.82% Increase In Net Profits, Buoyed By Strong Sales Performance
The Directors of Salada Foods Jamaica Limited are reporting in just released audited financial results of the Group for the financial year ended September 30, 2018, Net profits of $219.18M, representing a 219.82% increase against prior year’s results of $68.7M.
Commenting on the results Chairman Patrick Williams reported that profits were buoyed by strong sales performance, with the Group achieving sales over one billion ($1.041B), for the first time in the Company’s history.
The optimization of factory operations also resulted in improved margins, which also contributed.
Profits were further bolstered by a $34M write-back against retirement benefit.
Domestic sales continue to perform well, growing by 16.7% above prior year as the company deepened penetration in existing channels and access new ones.
Sales to the trade through distribution partner Lasco Distributors was $655M, 13% above prior year.
Export sales also did well, as both the Canadian and Barbadian markets performed, growing year on year by 440% and 220% respectively.
Contract packaging sales grew 35% above last year he said.
In May, the company launched the Mountain Bliss 876 (MB876) brand in keeping with a strategy to engage younger consumers and within 5 months of launch they are reporting having gained retail distribution of 70%. MB876 featured two SKU’s, the Gold, which is a freeze-dried coffee and the Classic, an agglomerated coffee. The launch of the MB876 and other marketing activities pushed selling and promotional expenses up 37.3% or $12.14M above prior year’s $32.76M.
Salada Foods Jamaica closed the period with improved earnings per stock unit up by 216%, moving from $0.67 last year to $2.12.