BUSINESS BRIEFS
Published:Wednesday | November 13, 2019 | 12:00 AM
Express Catering sales growth outperforms airport traffic
Sales growth by Express Catering Limited, which operates airport food shops, is outpacing passenger growth, which the company uses as a benchmark for its performance.
Revenues are up 11.7 per cent, compared to a 1.79 per cent growth in passenger movements for the company’s August quarter.
“We constantly benchmark our minimum revenue growth target to be in line with the rate of passenger growth, “ said CEO Ian Dear at the release of the earnings report.
Revenue for the quarter revenue grew to US$4.5 million from $4.0 million a year earlier; while earnings improved from US$938,000 to US$1.04 million. The business also registered an increase in cash generated. Net cash flows also improved to US$161,400 from US$35,000.
Express Catering operates a series of international food franchises at Sangster International Airport in Montego Bay, as well as a number of proprietary and Jamaican food and beverage brands, including Bobsled Cafe, Tastee Patties, Viva Gourmet Grab N Go, and Groovy Grouper. Annual sales for company for its fiscal year ending May 2019 translated to more than $2 billion in local currency.
Demand drives up sales for Knutsford bus service
The increased demand for cross-country bus services led to higher revenue for Knutsford Express Services, but its investment to keep pace with demand led to reduced profit at the close of the August first quarter.
The company said that its revenue increased 11 per cent in the quarter to $324 million, while profit declined by 46 per cent. Its earnings per share totalled 10 cents, down from 18 cents per share in the August 2018 quarter. The Jamaican side of the operation made a net profit in the quarter, but that was tempered somewhat by the Florida service, which made a loss of $9.2 million.
“Our results have been impacted primarily by expenses associated with refurbishment of our fleet, the buildout, of several new routes and increased departures,” said Knutsford CEO Oliver Townsend. “In addition, we continue to invest in our new overseas subsidiary KE Connect USA. We of course look forward to these investments coming of age and redounding to our benefit,” he said.
The group’s total assets grew 36 per cent year on year owing to its investment in KE Connect and preparatory investments in Drax Hall, where the company plans to relocate its current Ocho Rios depot.