In anticipation of the Salada Foods Jamaica Limited (SALF) 10:1 stock split, Jamaica’s equity market has been trading heavily in the company’s stocks with volumes at times topping 130,000 units in the last three months.
Year to date, SALF’s stock price has appreciated 35.69 per cent, closing at JM$41.52 per unit on Monday March 22.
At the annual general meeting of the company held on March 18, stockholders voted in favour of the resolution to increase shares.
They decided that SALF’s maximum entitlement to the number of issued shares should increase from 500,000,000 shares of no par value to an unlimited number of ordinary shares; such shares to rank pari passu with the existing shares in issue.
The stockholders also decided that each of the issued ordinary shares in the company’s capital would be subdivided into 10 ordinary shares with effect from the close of business on Wednesday, March 31, 2021. As a result in the total issued capital of the company will increase from 103,883,290 ordinary shares of no par value to 1,038,832,900 ordinary shares of no par value.
In addition, they decided that all unissued shares in the company will be converted into stock units when issued and fully paid.
The company has posted over JM$1 billion in revenues for three consecutive financial years.
For the year ended September 30, 2020, SALF reported revenues of JM$1.067 billion, compared to JM$1.113 billion at September 30, 2019. Export sales have also improved, up by 26 per cent, to end on September 30, 2021, at JM$261 million.
Net profit for the group for the first quarter ended December 31, 2021, reached JM$13.10 million, a 142 per cent increase when compared to the same period in 2019. This came from revenues of JM$226.36 million, a 22 per cent decline in comparison to JM$288.46 million at December 2019.
Directors said the decline in revenue in the first quarter was due to domestic sales declining by 29 per cent to JM$137.24 when compared to JM$190 million earned in the corresponding period.
This, in turn, they said, was due to a delay in receiving permits for certain products from the Jamaica Agricultural Commodities Regulatory Authority (JACRA).
Management said that having received the permits since, production should begin to normalise. Exports also increased during the first quarter by 1.3 per cent.