October 18, 2022

Margaritaville (Turks) Limited (MTL) reported a drastic hike of 261962% in revenues for the period to US$1.42 million (2021: US$543).

Cost of sales also increased to US$390,313 (2021: US$812), which resulted in a gross profit of US$1.03 million (2021: gross loss of US$269). Management noted that “despite the challenges in logistics experienced from the effects of the COVID-19 pandemic and the shortages that the Ukraine war is causing, the company managed to deliver a respectable 27.4% Cost of Sales for the Quarter.”

Total expenses increased 223% for the period under review to US$909,187 (2021: US$281,887). Promotional Expenses amounted to US$7,856 (2021: nil). Depreciation and amortization dropped by 6% to US$68,792 (2021: US$72,839). Other operating income amounted to US$273 for the period (2021: expense of US$4,419).

Consequently, the Company reported a net profit of US$94,439 (2021: loss of US$282,156). Similarly, total comprehensive profit amounted to US$94,438 (2021: loss of US$282,156).

The twelve-month trailing loss-per-share (LPS) was US$0.003, while for Q1 2022, EPS amounted to US$0.0014 compared to an LPS of US$0.0042 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 October 14, 2022 at $19.41 and $0.1497, respectively.

Balance Sheet Highlights:

The company, as at August 31, 2022, recorded total assets of US$4.50 million, an increase of 11% when compared to US$4.04 million as at August 31, 2021. This was mainly due to ‘Owing by related companies’ for the period totalling US$604,235 (2021: nil).

Total Stockholders’ equity as at August 31, 2022 closed at US$2.40 million, a 9% decrease from US$2.63 million for the corresponding period last year. This resulted in a book value of US$0.0355 (2021: US$0.039).

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