Durrant Pate/Contributor

Tourist entertainment company Margaritaville (Turks) recorded mixed performance for its combined three quarters ending February 29.

The company saw an improvement in passenger traffic, which amounted to 667,952 or 6.6% for the nine-month period, which is higher than the 626,569 recorded for the similar period in 2023. But net profit nose-dived to US$521,909, reflecting a 56% decline from the US$1.18 million reported in 2023.

This resulted in an earning per share (EPS) of 0.773 US cents. For the similar period in 2023, net profit was US$1.18 million (inclusive of non-recurring gains of US$658,000) for an EPS of 1.749 US cents. For the third quarter, net profit totalled US$222,174, down from US$725,182 in 2023.

Other financial highlights

The revenue from the increased passenger traffic year-to-date totalled US$5.25 million compared to US$4.98 million for 2023. Operating profit for the year to date closed on US$590,095, which is a 9.8% increase on the US$537,432 operating profit for the similar period in 2023.

The cost of sales component of the overall cost structure, performed creditably. The ratios of 25.35% and 25.32% for the nine months and third quarter, respectively, compared to 26.64% and 26.06% in the same order for the similar periods of 2023.

The current year ratios for both periods are in line with pre-pandemic ratios and meet our strictest standards. Directors Ian Dear and John Byles report that there have been some cost-saving opportunities in the general administrative expenses with staffing cost being one such area.

While acknowledging that the last-minute cancellation of ship calls would have a significant impact on the increase in this cost category, the directors are pointing to additional opportunities for aligning changes in staff costs with incremental pricing.

In concluding, the directors say there were no unusual movements in assets or liabilities during the period citing that the company has in place arrangements with suppliers and other creditors that are satisfactory, and these allow the business to flow seamlessly.