Salada Historical Performance

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HISTORICAL PERFORMANCE According to Salada Jamaica 2009 annual report, turnover was $432.4 million which showed an increase of $38.6 million or 9.8% more than 2008. This increase was due new marketing arrangement with exclusive distributors and the price increase undertaken. Trading profit for 2009 was $125.2 million, which shows a 39.9% increase, this increase is driven by growth in gross profit and improvements in production efficient. The net profit issued to shareholders in 2009 was $108.1 million, which is also an increase when matched to 2008 net profit of $75.3 million. The group earnings per stock unit in 2009 were 1.04 cents. The 2009 annual report further states that total sales volume was 4.56% lower than 2008. This is due to the decline in domestic market which reflects the economic climate and its impact on consumers’ spending. Furthermore, cost of sales increased by 1.6% to $234.8 million and gross profit margin increased by 4.4% on 2008 45.7%. The year 2010 was probably not one of the best years for Salada Foods. According to the 2010 annual report for Salada Foods Jamaica, due to the contraction of the Jamaican economy in 2010, turnover was $426.3 million. This resulted in a decrease in turnover of 6.1 million or 1.4% relative to 2008. Trading profit for 2010 was $91.4 million, which also represented a decrease of 27%. This decrease is due to the increased cost of raw materials, fuel and electricity. Salada Foods also tired to stimulate sales in the sluggish economy which resulted in an increased in promotion and selling expenses of 18%. The net profit attributable to shareholders was $81. Million compared to 2008 figure of $108.1 million, this lead to an earnings per stock unit of $0.78 cents. Unlike 2010, the year 2011 was a fairly good year for Salada Foods Jamaica as they came out of the economic downturn.

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