Revenue grew an impressive 20.7 percent to US$25,590,638 from $21,198,904 in 2023, with profit before taxation falling by 37.9 percent from $2,938,003 in 2023 to $1,825,441 and profit after tax dropping 76.9 percent to $1,408,276 from $2,702,227 for the year to May 2023 at the Montego based Express Catering.
Results for the August 2024 first quarter saw revenues rising marginally to US$6.5 million compared to US$6.4 million in 2023, with net profit for the Quarter climbing 18.6 percent to US$1.0 million for an EPS of 0.062 US cents per share, compared to a net profit of US$843,114 for an EPS of 0.051 US cents per share in the similar period in the prior year, with an increase spend rate rising by 9.83 percent, the company reported. The quarterly results would have been negatively affected by a falloff in traffic passing through the Jamaica’s busiest airport during the quarter.
For the latest quarter, gross profit rose 5.4 percent to $4.54 million from $4.3 in 2023, as cost of sale declined from $2.1 million down to $1.94 million. Administrative expenses fell from $2.13 million in 2023 to $1.85 million in 2024, Depreciation climbed by 41 percent to $941,539 from $666,526, following the establishment of addition outlets at the Sangster International Airport and finance costs rose from $536 million to $641 million. There was no provision for taxation in either periods.
The performance would be vastly better had the company been compensated for lending a large sum to related group companies. Amounts outstanding continue to climb and sit at US$17 as of August according to the latest interim accounts and jumped from US$12.47 million at the end of May 2023.

For the 2024 financial year, the cost of sales rose by 14 percent, slower than the growth in revenues, with the cost climbing to $8,470,019 from $7,432,646, resulting in a Gross profit of $17,120,619, up by a respectable 24.4 percent over $13,766,258 in 2023.
Promotional expenses for the year jumped 246.5 percent to $41,449 from $11,962, while Administrative expenses climbed 50 percent from $5,883,155 to $8,819,337. Depreciation climbed by 16.2 percent to $3,153,325 from $2,714,003.
Profit before interest expenses and taxation amounts to $5,106,508 for the fiscal year to May, compared to $5,157,138 in 2023
Finance costs jumped 44.5 percent to $3,257,186 from $2,253,791, Income tax climbed 47.9 percent to $417,165 from $235,776 in 2023.
The directors in their report on the August quarter stated that “Cost of ingredients as a ratio of revenue improved appreciably for the Quarter, registering a 2.82 percentage point improvement to close at a ratio of 29.96 percent, compared to 32.78 percent for the same period in the prior year. The company successfully implemented wide ranging price increases across most concepts beginning in August 2024. We are assessing any impact on volumes and expect to see the full impact of that change in the second Quarter. The expectation is for an additional 1.5 percent improvement in the COS ratio due to the price changes.”
The directors went on to state, “In June 2024, the national minimum wage was increased by 5.38 percent. This contributed to the overall 11.39 percent increase in the salaries and wages component of administrative costs for the Quarter. Other noteworthy cost increases were in utilities and insurance. There were savings in occupancy costs due to the increase in the minimum guaranteed rent. The lease liability and the underlying right-of-use assets were already adjusted to account for the increase. There were also some savings in franchise fees as well due to the change in the spread of revenue amongst proprietary vs franchised brands during the Quarter.”
Current assets ended the period at $18.75 million including $17.4 million due from related companies and cash and bank balances of $90,853. The related companies should not be treated as current as the amount has been climbing for several years. Current liabilities ended the period at $8.3 million. At the end of August, shareholders’ equity amounts to $8 billion with long term borrowings at $40 million including lease obligations of $14 million and short term loans at $3.5 million.
The company was able to resume dividend payments. An interim dividend of US0.0306 cents per share for a total of US$501,075 was paid on August 30, 2024. A second interim dividend of a similar amount was declared for payment on October 31.
ICInsider.com projects 40 Jamaican cents per share for current years’ earnings and 65 cents for 2026, with a PE ratio of 8 at the last traded price of $3.28, compared to the market average of 12.2. The stock is undervalued but management has not treated the minority shareholders equitably and this needs to change.