Durrant Pate/ Contributor

Sangster Airport-branded sports bars and restaurant concessionaire, Express Catering Limited (ECL), is reporting an improved first quarter with net profit and earnings per share (EPS) improving despite a marginal decline in the average passenger spend rate.

The spend rate for the August quarter was US$9.64, slightly down from the US$9.70 a year ago, but net profit for the period surged to over US$1.50 million with EPS closing on  0.092 US cents. This is up from the net profit of US$1.0 million and EPS of 0.062 US cents for the similar period in 2024, representing a 50% increase in net profits and associated EPS, which is a most commendable effort. Improvement in the Cost of Sales as a ratio of revenue was the most significant factor in the improvement in net profit. 

This ratio improved by 4.3% points to register a ratio of 25.65% compared to 29.95% ratio in 2024. The management credits this improvement to its ability to secure medium-term fixed price contracts for ingredients, which allowed the company sufficient time to review selling prices and to effect any necessary changes. This is in addition to Increased controls and monitoring of standards in the use of ingredients. CEO Ian Dear and Chairman Andrew Spencer are encouraged by the impact of this initiative.

Mixed performance in admin expenses

Administrative expenses experienced some mixed results, where wages and salaries saw a 15% reduction associated with initiatives aimed at improving scheduling. However, utilities, in particular electricity, saw a 44% increase. Credit Card Commissions experienced a 64% increase, associated with the conversion of several outlets into a credit-card-only payment option, aimed at increasing controls. In total, there was a marginal increase in overall expenses. 

During the quarter,  the number of passengers accessing the departure lounge of the Sangster airport increased by 5.52% to 704,567. This is compared to 667,705 passengers in the similar prior year’s Quarter. The management is excited by the fact that the negative travel advisory on Jamaica was revised towards the end of May 2025, explaining, “This may not have been enough time to have a positive impact on the passenger totals, but we do have high expectations that it will do so in the months ahead.”

US$6.8 million in revenue was earned for the quarter, resulting in a 4.78% increase compared to the US$6.50 million in revenue for the similar period in the prior year. The outlook for the rest of fiscal 2026 is that it will be more favourable than the 2025 fiscal year position, when there was a 7% decline. There are no reports or any empirical evidence of any slowdown in this sector. 

Dear and Spencer pointed to the additions to the room inventory during fiscal 2025, which were more than 1,000 rooms, which are now fully circulated and would be part of the marketing drive for the winter tourist season. Also, private development of accommodation continued at a brisk pace throughout the year, with ECL expecting to benefit from the increased traffic that the additional room inventory should bring.