The cash-rich Salada Foods Jamaica earned 2.5 per cent more after-tax profit at $20.5 million for its second-quarter ended March 31, 2010 compared with the prior year’s quarter as it benefitted from increased export sales.

The group which sells coffee, tea and sugar saw its sales increase 19.3 per cent to $98.8 million compared with the prior year’s quarter whilst its selling and promotions expenses increased by 20 per cent to $4.2 million in the quarter.

“The increase in turnover for the quarter ended March 31, 2010 was driven by increased export sales,” Salada stated in its financials released this month to the Jamaica Stock Exchange (JSE).

During the quarter company managed to generate and retain 50 per cent more cash and cash equivalents at $307 million compared with $201 million in March 2009. This was due to a spike in its core operations with net cash from operating activities at $68.69 million as at March 2010 versus $41.3 million as at March 2009.

Salada was slightly hurt by the Jamaica debt exchange (JDX) which cut the interest earned on investments held by the group. The group earned interest income of $8.3 million for the quarter which was slightly less compared with $8.7 million in the previous year’s second quarter.

“The reduction in interest income for the quarter is a direct result of the Government’s interest rate reduction policy,” it stated in its financials.

Salada yesterday closed at $11.00 which was almost midway from its 52-week high and low of $16.00 and $7.51, respectively. Between January to the end of April 2010 Salada was amongst the top declining stocks on the JSE dipping 22.5 per cent from $15.50 to $12. Its a see-way response to October 2009 when Salada was the top advancing stock.