SALADA Foods Jamaica Limited net profit for the three months to December 31, 2009 grew 24.3 per cent to $21.5 million, over the comparative period last year.

The instant coffee manufacturer’s income from operating activities increased 6.8 per cent from $19.8 million for the December 2008 quarter to $21.3 million in the corresponding period in 2009,

The firm saw a 44 per cent jump in interest income, which grew from $6 million in the first quarter of 2008 to $10.9 million in the quarter under review.

Salada said in its notes to shareholders that “increased sales and timely collection of receivables resulted in an increased amount of funds invested in money market instruments”.

Receivables fell by near $2 million to $78 million over the three months to December 31, 2009.

“The Government’s Debt Exchange programme will result in reduced interest income in the ensuing periods. However, the increased duration will not affect the company’s liquidity as all its repurchase agreements are short term,” added the statement to shareholders.

Salada’s earnings per share increased 23.5 per cent over the corresponding prior year’s quarter from $0.17 to $0.21 on the improved profits.

Although more than 90 per cent of the group’s sales are derived from coffee products, most of which is sold locally, Salada realised a $4.7-million improvement in turnover as a result of an increase in export sales during the December 2009 quarter.

Turnover grew by 4.8 per cent over the prior year to $103.6 million.

However, the improved sales came at a cost with the group’s selling and promotional expenses increasing 10.2 per cent to $5.4 million this quarter.

“These increases resulted mainly from islandwide in-store promotions,” said the company’s statement to shareholders.

Administrative expenses decreased 20 per cent on a reduction in bad debt provision over the corresponding period last year.