ECL reports 429% increase in nine-month net profit

April 11, 2023


Revenue increased 58% to US$15.15 million (2022: US$9.61 million). For the quarter, revenue increased 73% to US$6.04 million (2022: US$3.48 million). Management noted that this is the highest quarterly revenue recorded since inception.

Cost of sales (COS) increased 61% to US$5.26 million (2022: US$3.28 million). Consequently, gross profit increased 56% to US$9.89 million (2022: US$6.33 million). For the quarter, gross profit increased 79% to US$4.03 million (2022: US$2.25 million).

Total expenses increased 23% to US$6.31 million (2022: US$5.13 million). The growth was associated with a 32% increase in administrative expenses to US$4.07 million (2022: US$3.08 million). For the quarter, total expenses increased 37% to US$2.28 million (2022: US$1.67 million).

Consequently, operating profit increased 198% to US$3.60 million (2022: US$1.21 million). For the quarter, operating profit increased 201% to US$1.75 million (2022: US$581,248).

Finance income declined 53% to US$292 (2022: US$615), while finance cost and foreign exchange losses increased 6% and 486% to US$1.66 million (2022: US$1.56 million) and US$14,269 (2022: US$2,434).

Pre-tax profit increased 429% to US$1.93 million (2022: US$364,507). There were no tax charges for the period.

As such, net profit amounted to US$1.93 million (2022: US$364,507). For the quarter, net profit increased 854% to US$1.15 million (2022: US$120,248). Management noted that this is the highest quarterly net profit recorded since inception.

Earnings per share (EPS) amounted to US0.118 cents (2022: US0.022 cents). For the quarter, EPS amounted to US0.070 cents (2022: US0.007 cents). The number of shares used in the calculation was 1,637,500,000 units. Notably, ECL’s stock price closed the trading period on April 6, 2023 at J$4.72 with a corresponding P/E ratio of 18.91 times.

Management noted that the completion of the food court expansion continues at a brisk pace; the recently opened Guitar Bar has been getting rave reviews and work continues on the Bob Marley One Love experience.

Balance Sheet Highlights:  

Total assets as at February 28, 2023 increased 6% to US$42.53 million (2022: US$40.07 million). This upward movement is primarily attributable to a 32% increase in ‘Owing by related companies’, which closed at US$12.40 million (2022: US$9.36 million), tempered by a 9% decline in ‘Right-of-use asset’ to US$22.41 million (2022: US$24.63 million).

Total Stockholders’ equity as at February 28, 2023 increased 102% to US$5.26 million (2022: US$2.61 million); this resulted in a book value of US0.32 cents (2022: US0.16 cents).



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