Coffee processing company Salada Foods Jamaica Limited recorded higher revenues for the financial year ended September 30, 2025 despite increased selling and promotional expenses as it continued to invest in brand expansion and new markets.

For the 12-month period, gross revenues rose by nearly 8 per cent to total $1.60 billion, up from $1.48 billion in the prior year. Net profit, however, declined by almost 10 per cent, closing at $171.5 million.

“Growth was primarily led by the domestic market, where sales increased by 12 per cent to $1.30 billion, reflecting continued strong demand for the company’s product portfolio,” the company’s directors said in a recent report to shareholders.

Since the roll-out of a number of flavoured instant coffee products in 2022 alongside its ginger and turmeric tea products, the company has continued to witness strong local take-up of its ready-to-use sachet packages. Sold under the Jamaica Mountain Peak (JMP) brand, the product portfolio consist of flavours such as caramel, cinnameg (a mix of cinnamon & nutmeg) and coconut cappuccino, plus unique options like pumpkin spice turmeric latte. The 3-in-1 products combine coffee, creamer, and sugar, providing customers added savings and convenience.

General Manager Tamii Brown said that domestic market growth continues to be driven by strong consumer acceptance across both coffee and non-coffee offerings, supported by growing interest in flavoured and functional products.

“The Jamaica Mountain Peak Golden Turmeric Latte remains the strongest single driver of growth, performing well locally and in select Caribbean markets. We, however, continue to actively explore new product opportunities guided by consumer demand and market trends. In November 2025, we launched the Jamaica Mountain Peak Sorrel Hibiscus with Ginger — a product poised for success in both domestic and export markets,” she said in response to Jamaica Observer queries.

Brown further said that with portfolio diversification remaining a core part of the strategy, customers can look forward to more innovations under the company’s Jamaica Mountain Peak and private-label offerings.

“As we continuously assess new formats and categories, and possible expansion — including even our foray into liquid coffee — this will be approached in a disciplined and market-led way,” she further said to the Business Observer.

As Salada works to build brand awareness and lay the foundation for long-term growth, selling and promotional expenses for the reporting period increased to $81.40 million — accounting for 5.1 per cent of total revenues in comparison to $73.53 million or 4.96 per cent in the previous year.

Management said that the higher expenditure reflects increased marketing investments to support the company’s expansion into new markets.

“The higher promotional and selling expenses seen this period largely reflects targeted investments that were undertaken to support our expansion into export markets such as Barbados and the United Kingdom. Some of the activities included product launches, distributor engagement, in-market promotions and brand-building initiatives for our flavoured coffees and Golden Turmeric Latte,” Brown said, as she noted that these efforts, to date, have not only helped to strengthen brand awareness but to also improve market access and to position the business for sustainable growth in these territories.

Administrative expenses, which rose to $189.0 million, up from $158.12 million in the prior year, were, on the other hand, linked to one-off costs, including a redundancy expense incurred in June 2025, as well as some consultancy fees to support operational initiatives.

“These one-off expenses resulted in a 19.5 per cent increase in administrative expenses and without which the administrative expense ratio would have remained relatively consistent with the prior year,” the report noted.

Despite significant cost pressures from elevated raw material prices, Salada maintained stable gross profitability, with gross profit increasing by 6.8 per cent to $487.94 million. Gross margins remained steady at 30.49 per cent, a performance management attributed to ongoing operational efficiencies, improved production throughput, and disciplined procurement strategies.

Following Hurricane Melissa’s devastating impacts on farmers and suppliers who provide key raw materials, including coffee and other locally sourced inputs, Brown said the company is currently assessing longer-term implications for future crop cycles and availability.

“We purchased raw materials well in advance and maintained adequate inventory levels and as such we do not anticipate any material disruption to near-term production or our ability to meet customer demand. However, we continue to monitor conditions closely as we work with our suppliers until the agriculture sector recovers,” she said.

Tamii Brown (right), general manager of Salada, and other company directors converse with a shareholder following an annual general meeting.