Salada Foods Jamaica Limited yesterday announced that its board of directors has approved a 10:1 stock split which will take effect on Wednesday, March 31, 2021.
In a notice on the Jamaica Stock Exchange’s website, the company also informed that its board had approved an increase in the company’s entitlement to maximum issued shares from 500,000 to 1,500,000.
The decision to triple Salada’s entitled to maximum issued shares, therefore, paves the way for the 10:1 stock split.
Consequently, “each of the issued ordinary shares in the capital of the Company [will] be subdivided into 10 ordinary shares with effect from the close of business on Wednesday, March 31, 2021, resulting in total issued shares capital of the Company being increased from103,883,290 ordinary shares of no par value to 1,038,832,900 ordinary shares of no par value”, the notice read.
In the last financial year, Salada’s profits plummeted 22 per cent, as revenues also fell four per cent when compares to its 2019 performance of JM$1.11 billion.
“Export sales buoyed the fallout in revenue from the domestic market as it continues tohurt from the effects of the global pandemic,” Chairman Patrick Williams wrote in a report to stockholders last month.
“Nevertheless, Salada remains resolute to change and adapt to the existing landscape to ensure business viability and focused on our mission of continuously improving shareholder value”— Patrick Wiliams, chairman, Salada
While export sales improved by 26 per cent, moving from JM$161 million in 2019 to JM$200 million at the 2020 year end, local sales dipped 10.5 per cent.
Sill, Williams said the regulatory environment contributed to increase input costs and thereby lower profit margins.
“The year’s operating profit declined by 25 per cent to [JM}$126.69M from [JM]$169.98M at the last reporting period. During the year, the decisions of the regulator, Jamaica Agricultural Commodities Authority (JACRA) to delay and deny permits for the importation of raw material forced the use of higher-priced raw materials to manufacture some of our flagship products,” he told shareholders.
Net profit for FY2020 declined to JM$110.49, as against JM$141.37 million reported on September 30, 2019. Earning per shared fell from JM$1.37 in the previous year to JM$1.06 in 2020.
“Nevertheless, Salada remains resolute to change and adapt to the existing landscape to ensure business viability and focused on our mission of continuously improving shareholder value,” the chairman said.
Salada Foods stock reached JM$36.00 at 11:30 on Friday morning.