October 16, 2025

Margaritaville (Turks) Limited(MTL)

Unaudited financials for the first quarter ended August 31, 2025:

All figures are quoted in USD unless otherwise indicated.

Despite a 4% decrease in revenue, Margaritaville (Turks) Limited (MTL) demonstrated resilience in the first quarter ended August 31, 2025, with a revenue of $2.44 million, compared to $2.53 million in the corresponding quarter last year.

Cost of Sales saw a significant decrease, amounting to $598,153 (2024: $671,451), representing an 11% year-over-year decrease. This led to a 1% decrease in gross profit, which stood at $1.84 million compared to $1.86 million for the first quarter ended August 31, 2024.

Administrative Expenses decreased by 15% to close at $1.18 million (2024: $1.40 million), while Depreciation and Amortization remained unchanged, standing at $58,250 for the quarter. As a result, Total Expenses for the first quarter amounted to $1.25 million, a 15% decrease relative to $1.47 million reported in 2024.

Operating profit for the quarter showed a robust increase, amounting to $592,202, a 51% increase from the previous year’s $393,394. Other operating expenses totaled $17,344, a 2711% increase from the corresponding period last year (2024: $617).

Finance costs for the first quarter ended August 31, 2025, amounted to $1,875, a 54% decrease relative to $4,100 reported in 2024.

Total Comprehensive profit for the year amounted to $572,983, a 47% increase from the $388,575 reported in 2024.

“MTL’s first-quarter performance was driven by a proactive approach to strategic cost reductions and efficiency gains, which more than offset the modest decline in revenues. This operational discipline resulted in stronger profitability, improved cash flow, and a higher equity base, positioning the company for sustainable earnings growth despite top-line headwinds. However, investors should keep a keen eye on the company’s balance sheet performance, ensuring that the company’s dealings with related companies are value accretive.”

Consequently, Earnings Per Share for the quarter amounted to $0.85 (2024: EPS: $0.58). The twelve-month trailing EPS was $0.03, and the number of shares used in these calculations was 67,500,000. Notably, MTL’s stock price closed the trading period on October 15, 2025, at $13.26, with a corresponding P/E ratio of 3.15x.

Balance Sheet Highlights

The company’s assets totalled $9.80 million (2024: $7.75 million). Total increase in the company’s asset base is driven by a 51% YoY increase in “Owing by related companies” ending the quarter at $6.79 million (2024: $4.50 million), a 69% YoY increase in “Cash and bank balance” ending the quarter at $107,768 (2024: $61,858), and a 37% YoY increase in “Trade and other receivables” ending the quarter at $173,225 (2024: $126,291).

Shareholders’ equity was $6.79 million (2024: $5.02 million), representing a book value per share of $0.10 (2024: $0.07).

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