As mega ships take to the seas, Margaritaville Turks posts US$657,114 in net profit

 



Caribbean Money Daily

Food and beverage provider Margaritaville Turks Limited reported an inflow of just under one million passengers in the year ended May 31, 2024, also reporting a higher-than-average number of visitors in Q1.

MV Turks published first quarter results for the year where the highest passenger total for any quarter to date was recorded. 355,948 passengers cruised into the Grand Turk Cruise Port during the three months to August 31, 2024. The increase, management stated, was in all categories from ship calls to average passengers per ship call. The revenue and net profits followed suit as well. Revenue realized was US$2.53 million and net profit earned was $388,576.

MV Turks is a subsidiary of Margaritaville Caribbean Limited. Established in 1995, Margaritaville Caribbean Group Ltd. owns and operates a portfolio of restaurant, nightclub and tour concepts. The groups entertain experiences are located in tourism and transportation hubs in Jamaica, Grand Cayman, St. Thomas and Turks and Caicos.

MV Turks operates three F&B options at the Port, reporting 990,035 passengers who visited during fiscal 2024, a 13.1% increase on the prior year’s total.

Revenue of US $7.84 million was earned for the year compared to US$7.26 million in the prior year, a 7.93% increase. Net Profit was US$657,114 for the year. Shareholders earned (EPS) 0.97 US Cents per share.

Company Chairman Herrick Dear noted, “The average total passenger per cruise call has been increasing since the mega-ships were introduced to the route. This provides added opportunities as well as challenges to serve the increased number of guests.”

Dear stated, “The outlook for fiscal 2025 is robust." Herrick Winston Russell Dear, Chairman and non-executive director is a commissioned land surveyor, city planner and entrepreneur. 

Reported progress for MV Turks is a turnaround from 2020 when under covid conditions infusions of cash from the parent has been the source of funds used to keep the company afloat as cruises were grounded,

Revenue of $7.84 million at year end May 2024 was earned for the year, compared to US$7.26 million in the prior year for an increase of US$576,274 or 7.93%.

Management stated that it is to be expected that as passenger totals increase beyond an optimum total, there may be a reduction in spending rate, adding, “We, however, expect nominal revenue to continuously increase with any increase in passenger totals.”

 The average total passenger per cruise call has been increasing since the mega-ships were introduced to the route. This provides added opportunities as well as challenges to serve the increased number of guests. In April of 2024, the company rolled out additional satellite bars, including the beach areas that were not accessible prior due to security concerns.

Cost of sales ratio at 29.44% improved by more than 1% point when compared to the prior year ratio of 30.85%. The continued improvement, management stated, was through a combination of improved buying arrangements, inclusive of forward contracts, as well as increased use of pre-preparation and portion control apparatus in the execution of the kitchen duties.

-Caribbean Money Daily

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