SALADA Foods Jamaica saw a 22.7 per cent slip in net profit for the third-quarter ended June 30, 2010 compared to the corresponding period last year. The firm was impacted by the recessionary conditions which have ravaged the operations of similar entities over the period.

A high level of turnover at 13.3 per cent more than the 2009 quarter offset a greater reduction in profit. More than 90 per cent of Salada’s sales are in coffee products, most of which are sold locally. However, Salada chairman John Bell reported in a statement to shareholders that the increased turnover was driven by increased export sales.

As a result of the increased effort at improving sales, selling and promotional expenses increased 25 per cent over the quarter, with 2010 seeing $1.5 million more in promotional expenses than the comparative quarter of 2009. Bell noted that this was as a result of “more aggressive marketing and promotional activities to drive sales in the current recessionary environment”. Fuel and other raw material inputs contributed to the 21 per cent increase in the cost of sales.

The Jamaica Debt Exchange (JDX), which resulted in a reduction in interest rates, has also affected the interest income of the company which declined 24 per cent from $10.3 million in the 2009 third quarter.

As with other entities affected by the recession, shareholders will also see a decline in their earnings per share from 20 cents for the quarter versus 26 cents per stock unit for the corresponding quarter last year.