April 15, 2024
Margaritaville (Turks) Limited (MTL)
Unaudited financials for the nine months ended February 29, 2024:
Margaritaville (Turks) Limited (MTL) for the nine months ended February 29, 2024, reported a 5% increase in Revenue totalling US$5.25 million compared to US$4.98 million in the corresponding period last year. Revenue for the third quarter had a 14% decrease to close at $1.90 million compared to US$2.20 million for the comparable quarter of 2023.
Cost of Sales amounted to US$1.33 million (2023: US$1.33 million). Consequently, gross profit increased by 7% to US$3.92 million compared to US$3.65 million for the nine months ended February 28, 2023. The company booked gross profit of US$1.42 million for the third quarter versus US$1.63 million reported for the similar quarter of 2023.
Administrative Expenses increased by 9% to close at US$3.14 million (2023: US$2.88 million), while Depreciation and Amortisation decreased by 15% from US$206,376 in 2023 to US$174,497 in the period under review. As a result, total expenses for the nine months ended February 29, 2024, amounted to US$3.33 million, a 7% increase relative to US$3.11 million reported in 2023.
Operating profit for the nine months ended February 29, 2024, amounted to US$590,096, a 10% increase relative to US$537,432 reported in 2023. Operating profit for the third quarter amounted to US$211,543 (2023: US$343,589).
Other operating expenses totalled US$50,295 (2023: Operating Income of US$658,852).
Finance cost for the nine months ended February 29, 2024, amounted to US$16,359, a 5% increase relative to US$15,614 reported in 2023. Finance cost for the third quarter amounted to US$5,144 (2023: US$42,004).
No taxes were incurred in the period under review. As such net profit for the nine months amounted to US$521,909, a 56% decrease from the US$1.18 million reported in 2023. For the third quarter, net profit was US$222,174 (2023: US$725,182).
Consequently, Earnings Per Share for the nine months amounted to US0.77 cents (2023: EPS: US1.75 cents), while Earnings Per Share for the quarter totalled US0.33 cents (2023: EPS: US1.07 cents). The twelve month trailing EPS was US1.50 cents and the number of shares used in these calculations was 67,500,000.
Notably, MTL’s stock price closed the trading period on April 12, 2024, at a price of J$14.11 with a corresponding P/E ratio of 5.99x.
Balance Sheet Highlights
The company’s assets totalled US$6.50 million (2023: US$5.67 million). The movement in total assets was influenced by a 71% uptick in ‘Owing by related companies’ to US$3.02 million (2023: US$1.77 million), while ‘Property, plant, and equipment’ decreased by 8% to US$2.42 million and ‘Inventories’ declined by 25% to US$767,410.
Shareholder’s equity was US$4.50 million (2023: US$3.48 million), representing a book value per share of US$0.07 (2023: US$0.05).
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