NASSAU, BAHAMAS — BISX-listed AML Foods Ltd saw continued growth in its franchise sales for the second year in a row, with total sales increasing to $9.7 million, which marked a 13 percent improvement over the prior year.
The company, which operates Solomon’s, Solomon’s Super Centre, Solomon’s Fresh Market, Cost Right Wholesale and Domino’s Pizza, recorded a net profit of $2.8 million for its 2022/2023 fiscal year.
The company’s net profit was down $1.2 million or 30 percent compared to the prior year’s net profit of $4 million.
“Sales improved by 5.5 percent or $9.6 million, however inflation pressures and shrink performance had a large impact on gross profit, which decreased by $0.4 million compared to the prior year. With uncertainty around the impact to sales and profits due to inflation, our teams executed various cost savings initiatives and overall, we were able to reduce Selling, General and Administrative (SG&A) expenses as a percentage of sales from 27.4 percent to 26.9 percent,” the company noted.
While AML Foods was pleased to have been able to grow sales year over year, sales increases were driven mostly by increases in average retail prices because of inflation.
“Franchise sales from Domino’s Pizza continue to improve, and for the second year in a row, our Franchise division realized double-digit percentage increases year over year. Total franchise sales grew to $9.7 million, an increase of 13 percent over the prior year,” the company reported.
“There are indications to suggest that the spending capacity of customers remains limited. Depending on how long this persists and the severity, it could have a significant impact on our revenue growth and overall expenses.
“As we improve our product variety and in-stock levels, we expect to offset any negative impact on profitability from inflation. However, we have already begun to see changes in consumer habits with customers buying less items or trading down to substitute brands, indicating limitations on their capacity to increase their spending,” the company noted.
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