Increased Visitor Arrivals Drive ECL’s Net Profit 

• Express Catering Limited (ECL) reported a net profit of US$364.51k for its nine months ended February 28, 2022 which is a significant increase over the US$2.44Mn net loss recorded in the prior period. This improvement was fostered by an increase in the number of passengers accessing the departure lounge of the Sangster International Airport, which influenced a 323.3% growth in revenues. 
• In total, passenger arrivals were 1.21Mn, compared to just 318k for the similar period in the previous year. This led to increased demand for food and beverage products from ECL’s branded sports bars and restaurants. 
• The company also experienced higher input costs (ranging from ingredients to utilities) that are associated with the logistical challenges caused by the COVID-19 pandemic and the recently started war in Ukraine. Owing to this, direct costs increased by 474.8%; however, this was outweighed by the rise in revenues. 
• It is anticipated that ECL will see further recovery this year as the rebound in the tourism sector continues. Jamaica is expected to see increased visitor arrivals supported by increased flights to the island; reduced warnings on travel to Jamaica; and the execution of expansion plans by stakeholders. This will support ECL’s financial performance in the coming quarters through increased demand for its airport food services.
• ECL’s stock price has increased by 26.7% since the start of the calendar year. The stock closed Monday’s trading session at $6.48 and currently trades at a P/E of 57.5x which is above the Junior Market Average of 23.8x

(Source: Company Financials and NCBCM Research)