April 15, 2025

Express Catering Limited (ECL)

Unaudited Financials for the Nine Months Ended February 28, 2025
All figures are stated in USD unless otherwise indicated

Express Catering Limited (ECL) reported a 1% increase in revenue, totaling $18.89 million for the nine months ended February 28, 2025, compared to $18.67 million in the corresponding period last year. Revenue for the third quarter increased by 5%, closing at $7.43 million compared to $7.09 million for the comparable quarter of 2024.

Cost of sales amounted to $5.31 million (2024: $6.17 million), representing a 14% year-over-year decrease. Consequently, gross profit increased by 9% to $13.57 million, compared to $12.50 million for the nine months ended February 28, 2024. The company booked a gross profit of $5.49 million for the third quarter, versus $4.75 million reported for the similar quarter of 2024.

Depreciation and amortization increased by 28%, closing at $2.82 million (2024: $2.21 million), while administrative expenses decreased by 10%, from $5.97 million in 2024 to $5.35 million in the period under review. As a result, total expenses for the nine months ended February 28, 2025, amounted to $8.41 million, a 1% decrease relative to $8.46 million reported in 2024.

Operating profit for the nine months ended February 28, 2025, amounted to $5.10 million, a 27% increase relative to $4.02 million reported in 2024. Operating profit for the third quarter amounted to $2.38 million (2024: $1.78 million). Finance costs totaled $1.89 million, a 1% decrease from the corresponding period last year (2024: $1.92 million).

Foreign exchange gain for the nine months ended February 28, 2025, amounted to $11,574, a 150% increase relative to the foreign exchange loss of $22,990 reported in 2024. Foreign exchange loss for the third quarter amounted to $139 (2024: foreign exchange gain of $405).

Profit for the year, being total comprehensive income for the nine months, amounted to $3.22 million, a 54% increase from the $2.09 million reported in 2024. For the third quarter, profit for the year, being total comprehensive income, was $1.77 million (2024: $1.06 million).

Consequently, earnings per share for the nine months amounted to US 0.20 cents (2024: US 0.13 cents), while earnings per share for the quarter totaled US 0.11 cents (2024: US 0.07 cents). The twelve-month trailing EPS was $0.16, and the number of shares used in these calculations was 1,637,500,000.

Notably, ECL’s stock price closed the trading period on April 14, 2025, at $2.88, with a corresponding P/E ratio of 11.76x.

Balance Sheet Highlights

The company’s assets totaled $57.98 million (2024: $46.28 million). This increase in total assets was attributable to the right-of-use asset, which amounted to $25.26 million (2024: $20.15 million). Additionally, amounts owed by related companies also contributed to the increase, equating to $20.82 million (2024: $17.00 million).

Shareholders’ equity was $9.67 million (2024: $8.13 million), representing a book value per share of $0.93 (2024: $0.78).

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