ECL reports year end net profit of US$1.10 million

September 13, 2022

Express Catering Limited (ECL) for the year ended May 31, 2022 reported a 223% increase in revenue to US$14.24 million (2021: US$4.41 million). Revenue for the quarter climbed 116% to close at US$4.63 million relative to US$2.14 million reported the previous year.

Cost of sales (COS) rose by 228% for the period to US$5 million (2021: US$1.53 million). Likewise, gross profit grew year-on-year by 220%, from US$2.89 million in 2021 to US$9.24 million in 2022. Gross profit for the fourth quarter climbed significantly from US$1.19 million in 2021 to US$2.90 million, a 145% increase year over year.

Total expenses increased by 54% for the period in review to US$6.80 million, up from US$4.43 million booked for 2021’s year end. The growth was associated with a 100% uptick in administrative expenses to US$4.02 million from US$2.01 million booked in the same period last year. Depreciation and Amortization saw a 15% increase to US$2.78 million compared to US$2.41 million for the comparable period in 2021. Promotional expenses saw a 65% decrease from US$13,996 in 2021 to US$4,858 for the period under review. Total expenses for the fourth quarter rose 10% to close at US$1.68 million (2021: US$1.52 million).

Consequently, operating profit for the period amounted to US$2.43 million relative to the loss of US$1.54 million in 2021. Operating profit for the quarter totalled US$1.23 relative to the loss of US$336,749 booked for the corresponding quarter of 2021.

Finance cost of US$2.07 million (2021: US$1.93 million) was incurred for the period and foreign exchange gain amounted to US$8,059 relative to loss of US$59,378 reported a year prior.

Pre-tax profit for the year totalled US$1.10 million, a significant increase when compared to the pre-tax loss of US$1.73 million recorded for 2021. No tax was incurred for the period under review, as such net profit amounted to US$1.10 million (2021: loss of US$1.73 million). For the quarter, net profit amounted to US$732,296 versus a net profit of US$706,879 booked for the comparable period in 2021.

Earning per share (EPS) for the year ended totalled US0.07 cents (2021: LPS of US0.11 cents). Earnings per share for the quarter amounted to US0.04 cents (2021: EPS of US0.04 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 September 12, 2022 at a price of J$5.60 with a corresponding P/E ratio of 54.03 times.

Balance Sheet Highlights:  

The Company, as at May 31, 2022, recorded total assets of US$40.49 million (2021: US$39.81 million). The 2% increase in the asset base was primarily attributable to the 40% increase in ‘Due from related companies’ which amounted to US$10.66 million (2021: US$7.64 million), this was slightly tempered by a US$2.18 million decline in ‘Right-of-use asset’ which ended at US$24.03 million (2021: US$26.22 million).

Total Stockholders’ equity as at May 31, 2022 closed at US$3.34 million (2021: US$2.24 million); this resulted in a book value of US0.20 cents (2021: US0.14 cents).

Disclaimer:

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.

 

2022-09-13T09:37:51-05:00