Durrant Pate/Contributor

Express Catering Limited (ECL), which operates branded sports bars and restaurants at Sangster International Airport in Montego Bay has converted more airline passengers into customers during its third quarter. 

In fact, the company is on target to record its best year to date in passengers accessing the post-security lounge, as well as top-line revenue. Total passengers accessing the post-security departure lounge at the airport during the quarter ended February 29, 2024, was 705,116, generating revenues of US$7.09 million for a spend rate per passenger of US$10.05. 

This is a marked improvement over the corresponding period last year of 639,275 passengers with revenues of US$6.04 million for a spend rate per passenger of US$9.44. Revenue increased by 17.4 per cent and the spend rate per passenger increased by 6.5 per cent, translating to the company converting more passengers into customers, as well as selling more to each customer. 

Net profits for the third quarter totalled US$1.06 million and earnings per share (EPS) of 0.065 US cents compared to the net profit of US$1.15 million and EPS of 0.07 US cents for the same period last year.

Combined three-quarter performance

For the nine-month year to date, passenger totals increased by 11.9 per cent to reach 1.96 million passengers. Revenues amounted to US$18.67 million compared to US$15.15 million for the same period in 2023, a more than 23 per cent increase.

Net profit earned amounted to US$2.09 million for an EPS of 0.127 US cents compared to US$1.93 million in net profit for 2024 and an EPS of 0.118 US cents. Cost of sales improved appreciably for the third quarter and nine-month positions, registering a just under 1.0 per cent point improvement for the quarter and over 1.6 point improvement for the combined three quarters. 

The management reports that ECL continues to review the overall logistics strategy to carve out additional improvements in this cost category. Administrative expenses, driven mainly by staffing costs, have been identified for strategic review. 

Additional concessionaries being onboarded

There are still two outstanding new food and beverage concepts being prepared for rollout plus one additional outlet of an existing concept to be added to the overall food and beverage program in the post security lounge. Bento Sushi and Freshens are in construction phases as well as the additional Starbucks location, which should all be ready by the first quarter of fiscal year 2025. 

CEO Ian Dear and director John Byles highlight that, “The food court expansion has had a very positive impact on our revenue, but the overall staffing strategy now needs to be reviewed so that this cost category is brought in line with the overall business objectives.”  

They commented on ECL’s successful bond raise through the Jamaica Stock Exchange in which the US10.0 million offer was upsized to US$12.0 million and closed on March 8. 

The main purpose of the bond raise was to access improved pricing in the debt market. An existing instrument will be replaced from the proceeds.