Bizbriefs: Earnings reports
Salada perks up in the first quarter
Salada Foods Jamaica Limited spent more money in its December first quarter to boost its Mountain Peak brand, which paid off in increased sales and helped boost its bottom line.
Earnings spiked 28 per cent in the quarter to more than $17 million, on the back of $195 million of sales. The company said its revenue inflows also benefited from price increases implemented in November.
In the comparative 2015 quarter, the coffee company sold $189 million of products and netted $13 million of profit.
Salada said the four per cent rise in sales, year-on-year, was due to a near 43 per cent improvement in distributor sales. Its distribution is handled by Lasco Distributors Limited. The dark spot for the company was in the export market, where sales shrank 66 per cent in the quarter.
"The timing of export sales affected the quarter's performance," said Salada in its statement to shareholders.
Salada spent more than $13.5 million on marketing and sales in the December 2016 quarter, up 7.2 per cent from $12.7 million in the year-prior period.
Salada is primarily a coffee processor, but it also distributes grocery items under the Roberts brand.
Rebranding weighs on Lasco Financial results
Lasco Financial Services Limited made $62 million net profit for its December 2016 third quarter, up 41 per cent year-on-year, aided by its growth in revenues.
During the quarter, revenues rose 25 per cent to $298 million. Over nine months, net profit was only up 2.6 per cent at $162 million, but revenues were still climbing at a hefty rate of 26 per cent.
Its nine-month performance was affected by investments to expand the business in the first half of the year. Lasco Financial relaunched its services under the 'Lasco Money' brand during the quarter.
"This campaign comprises an awareness blitz of our three full-service locations where customers can buy money, sell money, borrow money, send money and receive money. We received good brand rotation towards the end of the third quarter and expect to continue the awareness blitz into the last quarter," said Managing Director Jacinth Hall-Tracey in a statement accompanying the third-quarter earnings report.
The financial company continues to deliver annual growth in excess of 20 per cent, Hall-Tracey said.
Shareholder equity grew to $1.13 billion, up 20 per cent year-on-year.