Improvement in passenger spend rate at Sangster Airport
/ Our Today
administratorCost of Sales continues to be the best area of savings
Durrant Pate/ Contributor
Express Catering Limited (ECL) is reporting an improvement in spending rate at the Sangster International Airport in Montego Bay, where it operates branded sports bars and restaurants.
Total passengers accessing the post security departure lounge at the airport during February 2025 quarter total 652,656, generating revenues of US$7.43 million for a spend rate per passenger of US11.38. For the similar 2024, 705,116 passengers accessed the departure lounge with total revenues amounting to US$7.04 million and spend rate per passenger of US$10.05.
Despite the decline in passenger totals, total revenue and spend rate improved in 2025. The improvement in spend rate is particularly important, as the increase was significant and is a result of the strategic measures that the company has been implementing over time.
Profitability climbing
Net profit earned for the quarter under review closed on US$1.77 million for an earnings per share (EPS) of US$0.108, compared to a net profit of US$1.06 million for an EPS of US$0.065 for the similar period in 2024.
Of all the cost categories, Cost of Sales continues to be the best area of savings for the quarter and year-to-date periods.
This category registered just under seven percentage points improvement for the review quarter and just under five percentage points improvement for the nine-month period. The improvement was a combination of price increases, better portion controls, and improved supply chain agreements.
The management intends to build on the trend for the rest of the year. Savings were also recorded in salaries and wages in line with the previously stated intention to better utilise this resource.
There was also a shift in cost allocation from property rental expenses to lease amortisation in line with the increase in Lease Obligation under International Financial Reporting Standards (IFRS) 16 rules.
The management continues to review all cost categories for additional savings. The winter season is now ending but the outlook is for an excellent summer season, and ECL is ready to serve its many patrons.
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