Express Catering Records Net Profit in Q1 Supported By Recovery in Tourism Sector
- Buoyed by rising revenues, Express Catering Ltd reported a US$1.65Mn year over year increase in net profit to US$565.07K (EPS: US$0.0345), for the first quarter ending August 31, 2021.
- Revenues grew by 719.3% due to increased operations. The company is now back to 25 of the 27 operating locations following the suspension of all units in March 2020 due to the COVID-19 Pandemic. Since the onset of the pandemic there has been several instances of relaxation of the restrictive measures, which has assisted the recovery in the restaurant, tourism and hotel industry. However, the discovery of new strains and the reintroduction of restrictions, has dampened the near term outlook for the sector.
- The YoY performance was tempered by an increase in direct and administrative expenses as well as finance costs of 679.2%, 110.8% and 64.0%, respectively.
- Construction work on the revamped post-security food and beverage lounge at the Sangster Airport 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. The benefit from this transformation is expected to begin in the winter season commencing December 2021.
- Express Catering’s stock price has increased 58.9% since the start of the year and closed Monday’s trading session at a price of $5.60 per share.
(Source: Express Catering Financials)