Passenger flow slows, but higher spending seen in Q2 for Express Catering

 


Express Catering Limited (ECL) for the second quarter ended November 30, 2024, generated revenue of US$4.99 million compared to US$5.18 million for the similar period in the prior year. This marginal decline in revenue was attributed to the 9.3 per cent decline in passenger count for the quarter.

In its latest report management outlined that  480,504 passengers accessed the departure lounge of the airport during the quarter compared to 529,800 passengers for the similar period in the prior year.

For the six months YTD, passenger count was 1.15 million compared to 1.25 million for the similar period in the prior year; an 8.5 per cent decline. Since April 2024, except for June 2024, all months experienced a decline when compared to the similar month in the prior year. For the month of June there was a marginal increase of 0.3 per cent.

Express Catering Limited, founded in 2001, is headquartered in Montego Bay, operating in food, beverages and souvenir shops at the Sangster International Airport.

For Q2, ECL’s management said they were encouraged by the spending rate realized for the period; US10.36 per passenger was returned, compared to US$9.78 for the similar period in the prior year.

“More than 80 per cent of the departing passengers are in the airport for six hours each day – between 9am and 3pm. The company continues to strategize on how to maximize efficiencies during this condensed flight departure window,” they commented.

The company is also considering additional Grab n Go offerings to increase passenger spend.

Net profit for the quarter returned US$443,475 for an EPS of 0.027 US cents per share. This compared to a net profit of US$187,240 for an EPS of 0.011 US cents for the similar period in the prior year.

For the six months, revenue generated was US$11.46 million, for a spend rate of US$9.98. Revenue for the similar period in the prior year was US$11.58 million, for a spend-per-passenger rate of US$9.23.

Net profit for the six months was US$1.45 million for earnings per Share (EPS) of 0.089 US cents. This is compared to a profit of US$1.03 million for Earnings per Share (EPS) of 0.063 US cents for the similar period in the prior year. Just over US$1.0 million in interim dividends was paid during the six months.

Gains came from cost of sales (COS) which in Q2 registered a 28.93 per cent ratio compared to 33.49 per cent for the similar period in the prior year: a more than 4.56 percentage points improvement.

The improvement management stated, was a combination of price increases, improved portion controls as well as efficiency improvements.

Savings were also recorded in salaries and wages, in line with the previously stated intention to better utilize this resource.

The company indicates that proprietary and other Jamaican branded products have been improving as a component of overall revenue resulting in franchise fee savings.

Photo credit: Cairnsadventurepark.com

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