MTL books six months net profit of US$455,196

January 20, 2023

Margaritaville (Turks) Limited (MTL)

For the six months ended November 30, 2022:

Margaritaville (Turks) Limited (MTL) reported six months revenue of US$2.78 million, an increase of US$2.77 million from the US$1,046 reported in November 2021. Revenue for the quarter amounted to US$1.35 million (2021: US$504). Management highlighted that, “Total passenger count for the six months to November 2022 was 343,456. This produced revenue of $2.78 million for a spending rate of US$8.08 per passenger.” Regarding performance over the three months the company stated, “The second Quarter saw a total of just under 168,000 passengers cruising into the port on 53 vessels, making an average of 3,169 passengers per ship call.”

Cost of sales increased to US$752,320 (2021: US$831), which resulted in a gross profit of US$2.02 million (2021: US$215). Management noted that “Cost of Sales ratio of 27.1% for the year to date is approximately 2% point higher than the pre-pandemic rate. Considering the continuous inflationary pressures since COVID-19 and the more recent Ukraine war, the company is doing well to contain the cost of ingredients.”

Total expenses increased 197% for the period under review to US$1.83 million (2021: US$614,915). The drivers of this increase in total expenses include Administrative Expenses which increased 258% to $US1.68 million (2021: US$467,298) and promotional expenses which increased 746% to $16,401 (2021: US$1,939).

Consequently, the Company reported an operating profit of US$193,844 (2021: loss of US$614,699). Operating profit for the quarter was US$70,403 compared to an operating loss of US$337,209 in November 2021.

Finance costs for the six-month period was US$57,619 (2021: nil), second quarter finance costs amounted to US$28,296 (2021: nil).

The company reported no taxation charge for the period.

As a result of this the company reported a six month net profit of US$455,197 compared to a net loss of US$606,269 in 2021. Net profit for the quarter amounted to US$360,759 compared to a loss of US$327,577.

The twelve-month trailing earnings-per-share (EPS) was US$0.007, while for the six months period, EPS amounted to US$0.0067 compared to an LPS of US$0.009 of the corresponding period of last year. The number of shares used in our calculations was 67,500,000. MTLJA and MTLUSD last traded on January 19, 2022 at $22.99 and $0.1450, respectively.


Balance Sheet Highlights:

The company, as at November 30, 2022, recorded total assets of US$5.32 million, an increase of 34% when compared to US$3.95 million as at November 30, 2021. This was mainly due to ‘Owing by related companies’ for the period totalling US$1.25 million (2021: nil).

Total Stockholders’ equity as at November 30, 2022 closed at US$2.76 million, a 20% increase from US$2.31 million for the corresponding period last year. This resulted in a book value of US$0.041 (2021: US$0.034).



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