Food manufacturer and coffee processor Salada Foods Jamaica Limited reported after-tax profit of $156.8 million for its financial year ended September 30, 2021.

This represented an increase of 41.9 per cent when compared with the $110.49 million recorded in the previous corresponding period.

Revenues for the year were $1.190 billion, up 11.5 per cent due to, among other things, the successful introduction of new, non-coffee products, namely the Jamaica Mountain Peak Ginger Turmeric Tea and continued strong export sales, the company’s financials indicated.

Selling and promotional spend increased by 18.3 per cent from $44.34 million to $52.43 million for the period under review in support of new products and shifting market trends from bottles to sachets.

The company said that consumers reduced their media consumption patterns while adhering to various coronavirus restrictions, which led its team to develop innovative tactics to gain or maintain their attention.

This included the marketing campaign, ‘A Cup for Everyone’, which sought to refamiliarise consumers and to engage non-consumers with the variety and diversity of the products offered under the Jamaica Mountain Peak brand against the background of rising prices and declining sales of flagship products on the local market.

Nonetheless, operating profit also increased by 43.8 per cent to $182.13 million, when compared with the $126.69 million recorded in the previous corresponding period.

Despite the year’s performance, the company said it “suffered the deleterious effects” of complying with the Jamaica Agricultural Commodities Authority (JACRA) regulations for a 30 per cent locally grown coffee quota, ongoing supply chain disruptions, and increasing freight costs.

It pointed out that it was able to offset the negative impact by relying on built-up inventory of raw materials and lower cost beans.

“The challenging regulations, ongoing COVID-19 pandemic, supply chain issues, and the capricious nature of the exchange rate remain threats to company operations,” the company stated.

“However the early success of the diversification strategy is encouraging, as are strong exports to established markets with new markets on the horizon. The ingenuity and resilience of the team resulted in the twin benefits of holding costs and increasing revenue,” it continued.

Administration expenses decreased by 7.4 per cent from $135.7 million to $125.7 million, “even as the company grappled with unpredictable lockdowns, shifting curfews, increased sanitation exercises, and stringent COVID-19 health protocols”.

At Salada’s last annual general meeting, held in March 2021, shareholders approved a 10-for-one share split with effect March 31, 2021. Accounting for this stock split, year over year earnings per share increased from 11 cents to 15 cents.