Business

Salada moves closer to $1B mark

Sunday, August 13, 2017

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Coffee maker Salada Foods is edging closer to its planned $1-billion mark in annual sales for its year ending September, even as export sales in the New York Tri State region continues to lag behind.

The company, in its just released nine month ending financial report says its initiatives to turn around export, sales in the United States, particularly the North East, remains paramount on its agenda.

Revenues for the company increased to $612.8 million, 13 per cent more than the prior year's result of $540.27 million.

According to Chairman Patrick Williams, the 'top-line' result was attributable to improved sales through local distributor, Lasco, which produced growth of 35 per cent for the quarter ending June.

“Miami is a success story for Salada and is now poised for expansion beyond our diaspora market,” he added.

Salada closed the quarter with net profit after tax of $63.29 million or 34 per cent above the $47.18 million recorded for the comparable period last year. Operating profit grew by 35 per cent above prior year numbers to $75.78 million.

Williams reasoned that the improvement was driven by increased domestic sales, improvements in margins, treasury management and tighter expense controls. Still, Salada is struggling to gain market acceptance of its innovative pimento smokers products.

Up to June, the company invested $20 million in its pimento smokers product and planned a new marketing strategy for the product. The strategy was to grow pimento exports in the United States and seek out new markets that have a preference for Jamaican products, like Japan.

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