“The expectation is that we will continue to experience challenges through the summer”
Butler: Improvements are expected in Q3 into Q4 as tourism industry gets back into full swing
NASSAU, BAHAMAS — AML Foods has reported that sales in its fourth quarter were down 18 percent compared to the previous year as the effects of the coronavirus pandemic and lockdown-related panic buying subsided.
Franklyn Butler, chairman of the BISX-listed food retail and franchise group, noted in the results for the fourth quarter and fiscal year ended April 30, sales for the quarter were $40.5 million, compared to $49.4 million for the same period in the previous year.
“Sales for the year ended at $174.9 million, an increase of $2.5 million or 1.4 percent over the prior year,” Butler noted.
“Net profit for the quarter was $1.2 million compared to $2.4 million for the same period last year. Year-to-date, net profit is $11.1 million, which includes net insurance proceeds of $4.6 million.
“Sales for the quarter were down 18 percent compared to the prior year, in line with expectations as the effects of the pandemic lockdowns subsided.
“Last year, in Q4, we saw sales increases of 13 percent due to the pandemic and lockdown-related panic buying. With unemployment levels remaining high and the tourism industry still not fully operational, we recorded sales below pre-COVID levels in many locations during Q4.”
Butler added: “Current trends for the first month of the new fiscal year that started May 1, 2021 show sales for most of our stores tracking strongly compared to 2019. The expectation is that we will continue to experience challenges through the summer, particularly in stores with a high concentration of lower to middle-income customers. Improvements are expected in Q3 into Q4 as the recovery in the tourism industry gains further traction.
“During the quarter, we continued to manage our expenses well. Cash balances remained healthy and increased compared to the same period last year and the year ended April 2020. Gross margins were also well managed but shrink continued higher than expected during the period. Our teams continue to work diligently to raise the level of excellence in this area of our business.”
Last week, the group announced it had completed the acquisition of Exuma Markets for $1.75 million.
“We are very excited about this acquisition, which represents a new market for us with great potential, and we are looking forward to servicing the Exuma community,” said Butler.
“Furthermore, we are actively seeking other growth opportunities to expand our business, whether it be through additional acquisitions or the purchase of new sites.
“We have also begun planning a potential new location for our Charles Saunders Highway property. We intend to seek a joint venture partner to develop the site for a shopping center, servicing the south of New Providence with a Solomon’s brand store as an anchor tenant.
“Given the quarter’s performance, the board of directors has approved a regular ordinary dividend payment of $0.04 per share and an extraordinary dividend of $0.03 per share, both payable on July 2, 2021 to shareholders on record as of June 25, 2021.”
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