Revenues were down 82% to US$2.27 million
Express Catering suffered a net loss US$2.44 million for the nine month period ended February 28, 2021, relative to profit of US$2.65 million recorded for the corresponding period in 2020.
For the February quarter, net loss amounted to US$786,283 million versus net profit of US$1.12 million booked for the comparable period in 2020. Operating loss for the period under review amounted to US$1.21 million compared to the 2020 operating profit of US$2.95 million.
However, operating loss for the last quarter totalled US$178,421 relative to an operating profit of US$1.24 million booked for the last quarter of 2020. Loss per share (LPS) for the nine months totaled US0.149 cents relative to earnings per share (EPS) of US0.162 cents in 2020. Loss per share for the quarter amounted to US0.048 cents (2020 EPS: US0.068 cents).
Finance cost of US$1.24 million was incurred for the nine month period compared with US$259,229 booked last year. Express Catering achieved foreign exchange gains of US$5,758 compared with a foreign exchange loss of US$45,254 for 2020.
Revenue nose-dived during the review period
The company saw its revenues for the nine month nose-dived 82 per cent to US$2.27 million. Revenue for the last quarter fell by 79 per cent to close at US$1.08 million.
However, the management in its report to shareholders pointed to some positive signs stating, “we are now closer to full resumption than ever before, and all are embracing it. Approximately 168 million Americans have taken at least one dose of COVID-19 vaccine and a large percentage of those are fully vaccinated. This statistic is important for our business because that country provides over 70 per cent of our customer base”.
Additionally, “for the April to May 2021 period, MBJ Airports are reporting passenger numbers that averages to 38 per cent of 2019 totals for the same period. Confidence is returning”.
Cost of sales contracted by 84 per cent for the period to US$569,933 (2020: US$3.55 million).
Gross profit decreased year-on-year for the nine-month period by 82 per cent, from US$9.36 million in 2020 to US$1.70 million in 2021. Gross profit for the third quarter declined from US$3.67 million in 2020 to US$809,671 million, a 78 per cent decline year over year.
Expenses going down
Total expenses declined by 55 per cent for the period in review to US$2.91 million, down from US$6.40 million booked for the nine months ended February 2020. The decrease was associated with an 81 per cent contraction in administrative expenses to US$1.11 million from US$5.94 million booked twelve months earlier.
Depreciation and Amortization increased to US$1.78 million compared to US$417,825 for the comparable period in 2020. Promotional expenses saw a 69 per cent decline from US$45,452 in 2020 to US$14,023 for the period under review. Total expenses for the quarter fell by 59 per cent to close at US$986,068 (2020: $2.43 million).
Express Catering as at February 28, 2021, recorded total assets of US$34.16 million (2020: US$10.67 million). Notably, ‘Property, plant and equipment’ closed at US$24.87 million, this represents an increase of $20.75 million from the US$4.13 million booked as at February 2020.
Owing by related companies’ rose by US$3.12 million to close at US$7.45 million with the management pointing out that, “fixed assets expenditure of US$171,875 year to date was mainly in connection with the development work to revamp the post-security food and beverage lounge that is being carried out by MBJ Airport Ltd. Being the dominant food and beverage provider at the airport, Express Catering is required to invest in this expansion by relocating existing concepts to the new food court as well as to develop and introduce new offerings to widen the available options for food and beverage in the airport.”