April 11, 2022

Express Catering Limited (ECL) for the nine months ended February 28, 2022, reported a 323% increase in revenue to US$9.61 million (2021: US$2.27 million). Revenue for the quarter grew by 223% to close at US$3.48 million relative to US$1.08 million reported for the previous year’s quarter. Notably, the company stated, “Total passengers accessing the department lounge of the Sangsters International Airport during the Quarter was just over four hundred and thirty – two thousand or almost 3 times the amount for the similar period in the previous year”

Cost of sales (COS) grew by 475% for the period to US$3.28 million (2021: US$569,933 ). Gross profit increased year-on-year for the nine-month period by 273%, from US$1.70 million in 2021 to US$6.33 million in 2022. Gross profit for the third quarter grew from US$809,671 in 2021 to US$2.25 million, a 177% increase year over year.

Total expenses grew by 76% for the period in review to US$5.13 million, up from US$2.91 million booked for the nine months ended February 2021. The increase was associated with a 177% growth in administrative expenses to US$3.08 million from US$1.11 million booked twelve months earlier. Depreciation and Amortization increased to US$2.04 million compared to US$1.78 million for the comparable period in 2021. Promotional expenses saw a 86% decline from US$14,023 in 2021 to US$2,010 for the period under review. Total expenses for the quarter rose 69% to close at US$1.67 million (2021: $986,068).

Operating Profit for the period amounted to US$1.21 million (2021: operating loss of US$1.21 million). However, operating profit for the quarter totalled US$581,248 relative to an operating loss of US$178,421 booked for the corresponding quarter of 2021.

Finance cost of US$1.56 million (2021: US$1.24 million) was incurred for the period, while foreign exchange loss amounted to US$2,434 (2021: FX gains: US$5,756).

ECL booked Net profit of  US$364,507 for the nine-month period relative to a loss of US$2.44 million recorded for the corresponding period in 2021. For the quarter, net profit amounted to US$120,248 versus net loss of US$786,283 booked for the comparable period in 2021.

Earnings per share (EPS) for the nine months totaled US0.0223 cents relative to loss per share (LPS) of US0.149 cents in 2021. Earnings per share for the quarter amounted to US0.0073 cents (2021 LPS: US0.048 cents). The trailing twelve months EPS amounted to US0.065 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 8, 2022 at a price of J$5.93 with a corresponding P/E ratio of 57.68 times.

Balance Sheet Highlights:  

The Company, as at February 28, 2022, recorded total assets of US$40.07 million (2021: US$34.16 million). Notably, ‘Property, plant and equipment’ closed at US$4.43 million (2021: nil). While ‘Owing by related companies’ rose by US$1.92 million to close at US$9.36 million.

Total Stockholders’ equity as at February 28, 2022, closed at US$2.61 million (2021: US$1.53 million); this resulted in a book value of US0.16 cents (2021: US0.09 cents).

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