Salada banks on innovation
Published:Wednesday | February 4, 2026 | 12:07 AM
Salada Foods Jamaica Ltd launched 13 new products over four years, driving revenue to a five-year high even as rising costs crimped profit margins.
“Portfolio diversification remains a strategic growth pillar,” stated Salada Chairman Patrick Williams in the annual report released last week.
The Kingston-based company has leaned into product diversification to reduce dependence on coffee, whose green bean prices hit recent highs. The diversification aims to “reduce its reliance on constrained raw materials”.
New launches include Golden Turmeric Latte in pumpkin spice and cinnamon flavours, Coconut Cappuccino, and instant ginger teas, targeting younger consumers.
“The Jamaica Mountain Peak Golden Turmeric Latte remained the strongest single driver of growth,” management said in the report’s discussion and analysis section. The company added an instant sorrel hibiscus beverage in November, after the fiscal year closed.
The coffee and beverage maker reported revenue of $1.6 billion for its financial year ended September 30, 2025, up 7.9 per cent from $1.48 billion a year earlier, according to its annual report filed with the Jamaica Stock Exchange. Net profit fell 9.7 per cent to $171.5 million from $189.9 million, as one-time restructuring charges and increased marketing spending offset top line gains.
Gross profit rose 6.8 per cent to $487.9 million, with the gross margin holding steady at 30.5 per cent despite elevated coffee costs. Management attributed the stability to “disciplined procurement” and efficiency improvements.
Operating expenses climbed sharply, however. Administrative costs jumped 19.5 per cent to $190 million, including redundancy payments in June and consulting fees. Selling expenses rose to $81.5 million as Salada supported launches in Caribbean and UK markets.
Cash flow from operations fell to $124.5 million from $389 million, reflecting inventory builds to hedge supply chain uncertainty. The company spent $106.3 million on plant upgrades, including an X-ray inspection system for food safety, partially financed by a US$302,000 related party loan at 6.0 per cent interest.
Salada paid $178.2 million in dividends during the year, or $0.126 per share. Cash declined $120.0 million to $154.6 million, though the current ratio remained healthy at 3.67.
Shares closed the fiscal year at $2.85, down from $3.30 a year earlier, in line with broader weakness on the JSE Main Market. The company executed a 10-for-1 stock split in March 2021, increasing shares outstanding to 1.04 billion.
Management said forward purchasing and inventory coverage should limit disruption from Hurricane Melissa and volatile foreign exchange rates.