However, total expenses rose by 59% for the period in review to US$1.67 million

Business is on the rise at Express Catering Limited, which registered a seven-fold increase in revenues for its first quarter ended August 31, 2021.

Revenues for the period under review rose by 719 per cent to US$3.64 million coming from a mere US$444,140 for the comparable period in 2020. Having made a profit of US$1.56 million for 2020, the company, which operates several shops at the Sangster International Airport, chalked up losses of US$1.73 million for its 2021 financial year, which ended on May 31.

The losses have come about due mainly to the downturn in traffic through the airport, as a result of COVID-19 and the resultant containment measures and tourism lock down but the business is showing improvement. Express Catering is reporting that it is now back to 25 of the 27 operating locations at the airport following the suspension of all units in March 2020 due to the COVID-19 pandemic.

Cost of sales rose by 679 per cent for the first quarter of 2022 to US$1.24 million coming from US$159,423 in the comparative period of 2020. Gross profit increased year-on-year for the three-month period by 742 per cent, to US$2.40 million from US$284,717 in 2020.

Expenses going up with a 59% jump in the quarter

Total expenses rose by 59 per cent for the period in review to US$1.67 million, up from US$1.05 million in 2020. This increase was associated with an 11 per cent increase in administrative expenses from US$471,249 in 2020 to US$993,374 in 2021.

Depreciation and Amortization saw a 17 per cent increase to US$678,444 compared to US$581,864 for 2020.

Promotional expenses amounted to US$1,314 (US$1,498). Consequently, operating profit for the first quarter amounted to US$723,545 versus an operating loss of US$769,894 recorded in the same period last year.

Finance cost of US$514,646 (US$314,185) was booked for the period. Foreign exchange loss amounted to US$328 for the period.

This resulted in total comprehensive income of US$565,068 compared to total comprehensive loss of US$1.08 million booked in the corresponding period for 2020. Express Catering highlighted the infrastructural improvements taking place at the post-security food and beverage area at the airport.

According to the company, “construction work on the revamp post-security food and beverage is projected to commence in September 2021. The first phase will see the relocation of existing brands to designated areas in the new food court. We expect to benefit from this transformation in the winter season commencing December 2021″.

The company, as at August 31, 2021, recorded total assets of US$40.50 million compared to US$31.59 million as at August 2020. This was mainly as a result of a significant increase in ‘Assets due from related companies’ from US$3.57 million in 2020 to US$8.80 million in 2021.

Total Stockholders’ equity as at August 31, 2021 closed at US$2.81 million (2020: US$2.90 million)  This resulted in a book value of US0.17 cents (2020: US 0.18 cents).