Salada triples export sales, profit
Salada Foods saw its export sales and net profit triple in its second quarter, which ended March 31.
The coffee manufacturer's revenue from overseas markets totalled $66.8 million for the three-month period, or 30 per cent of its total sales, compared with $22.9 million, or 18 per cent of total sales in the corresponding quarter last year.
Domestic sales also rose by 50 per cent from year-earlier levels to $153.6 million during the review quarter.
"Although the prior year's quarter's sales was negatively impacted by the transition to a new distributor, sales for the current quarter also compares favourably with the equivalent quarter in 2013.
Salada shifted its local distribution from T. Geddes Grant to Lasco Distributors last year. Three months ago, the company was also on the verge on securing a new distributor in the US, according to Jerome Miles, general manager of the manufacturing company. The company, however, did not provide a reason for the jump in its export sales.
The company said that its profits continue to be affected by the increase in price of coffee beans experienced in its first quarter. Its factory which makes the Roberts Food product line also continued to make a loss while Pimora Company - a pimento briquette maker - is to start operations in its third quarter.
Higher coffee costs resulted in a reduction in gross margins from 35 per cent to 32.2 per cent.
However, Salada's net profit climbed from $9 million during the three months to March 31, 2014, to $29 million during the second quarter this year.