Salada Foods Ltd reported first-quarter revenues and profit sliding amid storm-battered logistics and weaker domestic demand — an early signal of how deeply Hurricane Melissa has cut into Jamaica’s agri-food value chain.
“The decline was primarily attributable to the impact of Hurricane Melissa, which resulted in temporary disruptions to the company’s manufacturing operations and domestic distribution during the quarter,” the management said in the preface to the financials.
For the three months ended December 31, 2025, the coffee and beverages maker posted gross revenues of $360.4 million, down 9.5 per cent from $398.2 million a year earlier, while net profit fell 36 per cent to $32.15 million. Exports jumped 44.9 per cent, partially offsetting local softness.
Margins narrowed. Gross margin slipped to 29.4 per cent from 31.7 per cent on reduced throughput and hurricane related inefficiencies; operating profit fell 37.9 per cent to $39.6 million. Selling and promotional expenses climbed to 6.3 per cent of revenue, reflecting brand support around the Jamaica Mountain Peak Sorrel Hibiscus beverage launched in November. Administrative costs rose as a share of sales on a largely fixed cost base. Softer earnings land against a strong 2024 base year.
Melissa’s wider effect
The company’s explanation aligns with broader agriculture and food processing fallout. Hurricane Melissa — Jamaica’s most powerful on record — made landfall last October, crippling infrastructure and slamming productive heartlands. Preliminary assessments put agricultural losses around US$180 million, with tens of thousands of farmers affected and supply lines hobbled by landslides and flooding. Coffee, a key input and brand pillar for Salada, was hit especially hard in the Blue Mountains, where sector leaders estimate about 40 per cent of the ripe crop was ravaged, translating to roughly $1 billion in farm-gate losses. Roads blocked for days delayed deliveries and processing.
Cash flow pressure
Operating cash flow swung to a $38.6-million outflow in the quarter from an $11.7-million inflow a year earlier. The main reason, a $96-million inventory build, likely a mix of storm-delayed goods in transit, safety stock to buffer volatile supply, and seasonal inventory ahead of the holidays. These movements overwhelmed modest receivables collections and a lift in payables. After modest investing activity and $60.3 million in dividend payouts, cash and equivalents fell to $11.9 million at quarter end from $138.1 million in December 2024.
neville.graham@gleanerjm.com
