November 19, 2020
For the nine months ended September 30, 2020:-
Everything Fresh Limited (EFRESH), for the nine months ended September 30, 2020, Revenue fell by 46% amounting to $881.11 million, down from $1.64 billion reported a year ago. The third quarter reported revenues of $307.91 million, a 41% decrease when compared to the $525.17 million for the corresponding period last year. EFRESH stated, “On July 1, 2020, our Company acquired 60% of the shares of Everything Fresh Bahamas Limited, a company registered in the Bahamas. Everything Fresh Bahamas services the same industries as the Jamaican company, namely tourism, restaurants and retail. The Covid 19 pandemic has severely impacted the results of both companies. The Bahamas is currently in its second lock-down with very few hotel rooms in operation. The Bahamian company is currently doing very well in selling to the local trade and once the hotels reopen, is poised for significant growth.”
Cost of sales closed the period at $782.16 million (2019: $1.43 billion), the group’s gross profit fell to $98.95 million (2019: $205.04). For the third quarter, gross profit decreased significantly by 43% to $42.18 million in 2020 relative to $74.12 million in 2019.
Other operating income saw an increase of 96% to $3.06 million from $1.56 million.
Operating expenses totalled $200.16 million, 13% less than the $231.39 million booked the previous year. Of this, administrative expenses fell to $198.45 million (2019: $230.99 million) and selling and promotion expenses rose to $1.71 million from $393,000 in 2019. Thus, operating loss for the period amounted to $98.16 million relative to an operating loss of $24.79 million in the prior year.
Finance costs of $24.31 million was reported for the nine-month period relative to $15.83 million reported last year. Thus, Loss before tax was $122.47 million for the period relative to a loss before tax of $40.62 million in 2019.
No tax was booked for the nine months ended September 30, 2020. Consequently, net loss amounted to $122.47 million compared to net loss of $40.62 million for the corresponding period in 2019. For the third quarter a net loss of $54.71 million was booked compared to a net loss of $12.04 million in the previous year.
Consequently, loss per share (LPS) amounted to $0.15 (2019: LPS of $0.05) while loss per share for the quarter amounted to $0.07 versus a LPS of $0.02 in 2019. The twelve months trailing LPS is $0.21. The number of shares used in this calculation was 780,000,000 shares. EFRESH stock price closed the trading period at a price of $0.66 on November 18, 2020.
The Company noted, “Both companies continue to remain liquid due to tight management of working capital.” Additionally, “The foundation has been laid to minimise the losses and begin the turnaround as the Caribbean hotel sector continues to show signs of increased activity despite the on-going pandemic.”
Balance Sheet at a glance:
Total Assets grew by 12% or $112.86 million to close at $1.05 billion as at September 30, 2020 (2019: $940.91 million). This increase in total assets was largely due to a 25% increase in ‘Inventories’ which closed at $405.79 million (2019: $325.47 million) as well as a 38% increase in ‘Right-of-use-assets’ which closed at $122.71 million (2019: $89.06 million).
Shareholder’s equity totalled $417.30 million compared to the $583.67 million for 2019. This resulted in a book value of $0.535 (2019: $0.747).
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