Margaritaville (Turks) Reports Net Loss Owing to Low Cruise Activity

• Margaritaville (Turks) Ltd. has reported a significant decline in its earnings from a net profit of US$72,132 in FY 2020 to a loss of US$1.38Mn in FY 2021, on the back of a falloff in revenues. 
• At the close of the financial year ended May 2021, one of the major cruise lines, Carnival cruise, had not resumed activity in Grand Turk, which contributed to a 99.2% decline in revenues. However, as vaccination rates in source markets increase and as cruise ships gradually resume operations, the company’s revenues should begin to improve. 
• The impact of the falloff in revenues on the company’s bottom-line was tempered by a decline in direct, admin and promotional expenses by 97.4%, 70.9% and 100.0%, respectively. The drop in admin expenses was partly due to lower spending on employee benefits such as salaries, wages, medical and related expenses. 
• Margaritaville’s stock price has fallen by 65.4% since the start of the year and closed Tuesday’s trading session at a price of $15.05 per share.

(Source: Margaritaville Financials & NCBCM Research)