Business
JM | Jan 22, 2023

Express Catering half-year profit up 219%

/ Our Today

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Revenues grew 49% to US$9.12 million

An outlet operated by Express Catering.

Express Catering Limited (ECL) is seeing a resurgence in business, which plummeted during the pandemic period, as profits more than doubled during the half year ended November 30, 2022.

Profit before tax for the review period increased by 219 per cent to US$779,649, coming from US$244,258 12 months earlier. For the November quarter, pre-tax profit amounted to US$126,807 compared to a loss of US$320,810 for the same period in 2021.

Earnings per share (EPS) for the half year was US$0.047 relative to US$0.014 booked 12 months prior.

Notably, ECL stock price closed the trading period on January 20, 2023, at a price of J$5.48 with a corresponding P/E of 35.47x.

Revenue grew by US$4.94 million or 49 per cent to close at US$9.12 million, up from the US$6.13 million reported for the same period in 2021. For the November quarter, revenue amounted to US$4.20 million, up from US$2.50 million posted for the similar period in 2021.

US$3.25 million in cost of sales

Cost of Sales increased from US$3.25, which would represent an increase of 42 per cent year over year in comparison to 2021 which was US$2.28 million. For the quarter, cost of sales amounted to US$1.51 million (2021: US$1.04 million).

Administrative expenses rose by 35 per cent to close at US$2.48 million (2021: US$1.84 million). Promotional expenses increased by 14101 per cent from US$1,338 in 2021 to US$190,003 in the period under review. Based on this increase, operating profit for the year ended period amounted to US$1.85 million, an increase of 194 per cent to what was reported in 2021, which was US$628,660.

Finance cost increased by two per cent year over year, amounting to US$1.04 million relative to US$1.02 million recorded for the corresponding period 2021. For the quarter financial cost increased by three per cent from US$508,856 in 2021 to US$521,584 in 2022.

Foreign exchange loss increased to US$24,051 in 2022, which is a 519 per cent increase over the US$3,883 reported in 2021. For the quarter foreign exchange loss went up 93 per cent to US$5,055 (2021: US$2,620)

Balance Sheet Highlights:

ECL, as at of November 30, 2022, recorded total assets of US$41.87 million (2021: US$39.94 million), which is US$1.92 million more year over year. The increase was largely due to an increase of US$2.70 million in ‘Owing by related companies’ to US$12.03 million (2021: US$9.33 million).

Shareholders’ equity was US$4.12 million (2021: US$2.49 million), representing a book value per share of US$0.25 (2021:US$0.15).

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