Monday, March 10, 2014
Salada's profits soarBY SHAMILLE SCOTT Business reporter
SALADA Foods Jamaica has posted a $52.5- million profit for the second quarter, up sharply from $6.5 million at the same period last year.
The Kingston-based coffee processor credited increased sales and improved efficiencies for the enormous improvement.
The company began an aggressive push for overseas sales in 2011, leading to export volumes rising by 35 per
cent — primarily driven by shipments to Asia and North America.
Turnover for the latest quarter rose 62 per cent, from $152 million to $246 million, partly due to higher prices aimed at offsetting increased input costs.
The company, led by chairman John Bell, also improved factory efficiencies and made other cost savings, it said in its latest report.
Salada's main activity is making and selling instant coffee and roasted and ground coffee beans.
But in an attempt to broaden its range it bought canned food and juice company Roberts Products last month.
The company will go "into other value — added agro-processing products within the existing capabilities of the manufacturing plant" Salada general manager Julian Rodney told the Jamaica Observer at the time.
"The plan is to resuscitate the company's productive capacity and regain market share," he said.
The company is also pushing for higher domestic ginger production for its tea, which it introduced last October.
Selling and promotional expenses for the quarter were $12.1 million, almost double the $6.3 million spent a year earlier.
Administrative expenses stood at $20.5 million, $5.3 million up on the same quarter last year.
This was largely due to the introduction of safety standards, including the Hazard Analysis Critical Control Point, in an effort to meet the requirements of America's Food Safety Modernisation Act, which is due to be fully phased in by December.
The act calls for all food exports to the US to be tested by an accredited laboratory.
Salada saw its cost of sales rise to $139 million in the quarter under review, $14 million more than the $125 million it spent during the same quarter last year.
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