September 26, 2023
Expressed in United States dollars unless otherwise stated:
Express Catering Limited (ECL) for the first quarter ended August 31, 2023, reported a 30% increase in Revenue totaling $6.40 million compared to $4.91 million in the corresponding period last year.
Cost of Sales amounted to $2.10 million (2022: $1.74 million), this represents an increase of 20% year over year. Consequently, gross profit increased by 36% to $4.30 million compared to $3.17 million for the three months ended August 31, 2022.
Depreciation and amortization decreased by 2% to close at $666,526 (2022: $678,444), while Administrative Expenses increased by 73% from $1.23 million in 2022 to $2.13 million in the period under review. As a result, total expenses amounted to $2.90 million, a 46% increase relative to $1.98 million reported in 2022.
Operating Profit amounted to $1.40 million, an 18% increase relative to $1.19 million reported in 2022. Finance Cost totalled $536,071, a 3% increase from the corresponding period last year. (2022: $522,130).
Foreign Exchange Loss amounted to $22,150, a 43% increase relative to $15,464 reported in 2022.
Profit before tax had a 29% increase to reach $843,115 (2022: $652,841). Profit for the year being total comprehensive income for the first quarter amounted to $843,115, a 29% increase from the $652,841 reported in 2022.
Consequently, Earnings Per Share for the quarter amounted to J$0.08 (2022: J$0.06). The twelve-month trailing EPS was J$0.27 and the number of shares used in these calculations was 1,637,500,000.
Notably, ECL’s stock price closed the trading period on September 25, 2023, at a price of $4.60 with a corresponding P/E ratio of 16.74x.
ECL highlighted, “In July 2023, the first Bob Marley’s One Love food and beverage experience opened to the travelling public in the revamped food court. The finished product is an authentic offering, with cuisines from Jamaica and the rest of the Caribbean, which has been very well received. The detailed design of the restaurant was done in conjunction with The Design Solution (TDS) and Pragma Consulting – international airport design and retail and merchandising expert companies, respectively. These companies are based in the United Kingdom. The company is now focused on delivering the final two experiences that will complete the food court renovation initiative. Bento Sushi, an international fast casual dining experience of an Asian origin and Freshens, a casual health-conscious juice brand, are scheduled to be in place by the first Quarter of calendar 2024.”
Balance Sheet Highlights
The company’s assets totalled $43.59 million (2022: $41.22 million). ‘Owing by related companies’ amounted to $14.01 million (2022: $11.67 million).
Shareholder’s equity was $6.88 million (2022: $3.99 million), representing a book value per share of J$0.65 (2022: J$0.37).
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