ECL reports three months net profit of US$652,841

September 21, 2022

Express Catering Limited (ECL), for the three months ended August 31, 2022, revenues rose by 35% for the period to US$4.91 million (2021: US$3.64 million). According to the company, “Total passengers accessing the departure lounge of the Sangster International Airport during the Quarter was just below Six Hundred and Twenty-tree Thousand, or 37.44% higher than the similar period last year when just over Hour Hundred and Thirty-Two Thousand passengers entered the departure lounge.”

Cost of sales (COS) rose by 40% for the period to US$1.74 million (2021: US$1.24 million). Nonetheless, gross profit increased year-on-year for the three-month period by 32%, to US$3.17 million from US$2.40 million in 2021.

Total expenses rose by 19% for the period in review to US$1.98 million, up from US$1.67 million in 2021. This increase was associated with a 24% increase in administrative expenses from US$993,374 in 2021 to US$1.23 million in 2022. Depreciation and Amortization remained unchanged at US$678,444 while Promotional expenses amounted to US$71,631 (US$1,314).

Consequently, operating profit for the first quarter amounted to US$1.19 million versus operating profit of US$728,498 recorded in the same period last year.

Finance cost of US$522,130 (US$514,646) was booked for the period. Foreign exchange loss amounted to US$15,464 for the period. This resulted in a total comprehensive income of US$652,841 compared to total comprehensive income of US$565,068 booked in the corresponding period for 2021.

The twelve-month trailing earnings-per-share was US 0.0723 cents. While for Q1 2022, the EPS amounted to US 0.040 cents (2021: US 0.035 cents). The number of shares used in our calculations was 1,637,500,000 units. Notably, ECL closed the trading period on September 20, 2022, at a price of J$5.54 with a corresponding P/E ratio of 50.52 times.

ECL notes, “Construction work on the revamp post-security food and beverage lounge at the airport is ongoing. An additional US$298,424 was spent on the project during the Quarter.”

Balance Sheet Highlights:  

The company, as at August 31, 2022, recorded total assets of US$41.22 million compared to US$40.50 million as at August 2021. This was mainly as a result of a significant increase in ‘Assets due from related companies’ from US$8.80 million in 2021 to US$11.67 million in 2022.

Total Stockholders’ equity as at August 31, 2022 closed at US$4 million (2021: US$2.81 million)  This resulted in a book value of US 0.24 cents (2021: US 0.17 cents).


Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.