AML profits up more than 650 percent at close of 2021 financial year

AML Foods said it has recorded its highest net profit in a single year, pulling in $11.1 million for the 12 months ended April 30.

In its annual report for 2021, AML said it was a staggering 673 percent increase in net profits over the 2020 financial year which pulled in $1.4 million.

“During the year, the company received insurance recoveries related to Hurricane Dorian claims in the amount of $4.9m which was included in the current year’s profit and loss. Expenses were well managed and were $0.9m (or 2 percent) lower than prior year despite a 1.4 percent sales growth during the year,” the multi-brand company said in its annual report for 2021.

“Given the decreasing debt balances for both preference shares and bank loans, dividends on preference shares and interest expense also decreased during the year by $0.2m. The company incurred $0.1m of pre-opening expenses during the last quarter of the year, related to its new Exuma location which subsequently opened in June 2021.”

AML’s brands include Solomon’s, Solomon’s Super Centre, Fresh Market, Cost Right Wholesale and Domino’s Pizza.

While gross profit margins increased for the third consecutive year, shrink performance did not improve and accounted for nearly four percent of sales, the company said.

“Several factors impacted our shrink levels including over-ordering in our perishables department. Management has implemented several tools to better align purchases with forecasted and historical sales data. We have continued our focus on this area and expect to see an improvement in shrink in the upcoming year,” the annual report stated.

Nonetheless, AML said sales performance was strong over the period despite the challenges faced globally caused by the COVID-19 pandemic, increasing by $2.5m (or 1.4 percent).

“For the tenth consecutive year, sales growth was positive. Total sales were $174.9m for the 12 months ended April 30, 2021 compared to sales of $172.4m for the 12 months ended April 30, 2020. Within our food distribution division, customer habits continued to trend toward larger basket sizes but lower shop frequency. Compared to 2020, transaction counts decreased by 16 percent while average spend increased by 23 percent,” the annual report noted.

“Overall, our food distribution segment recorded sales of $168.1m, an increase of $3.7m or 2.2 percent over prior year. Food Distribution sales accounted for 96 percent of total sales.

On the other hand, AML saw lower sales in its franchise division as a result of the government’s COVID-19 emergency orders.

“Our franchise division sales struggled during the year amidst the various lockdowns and reduced operating hours as imposed by the government throughout the year. For the majority of the year, our Domino’s locations operated on reduced hours and there were periods of extended closures, particularly during the month of August 2020 when the operations were closed for the entire month. This had a significant impact on our franchise division’s performance, and sales decreased by $1.3m or 15 percent for the year ended April 30, 2021,” the company said.

AML President and CEO Gavin Watchorn said despite the challenges over the past 12-18 months the group of companies performed admirably and he remains optimistic about AML’s recent acquisitions and plans for expansion in 2022.

“While we all yearn to return to the life we knew prior to COVID-19, it is becoming more apparent, that certain aspects of the changes we have experienced over the past 12-18 months will remain a part of our daily routines and processes. Health and safety concerns for our customers will remain elevated, as well as the expectation of quality products and service. The use of technology to determine how and where we work and manage our business to drive efficiencies will also continue. These are exciting times for our Company,” he said.

“In June 2021, we welcomed our team members from Exuma Markets into the AML Family. The acquisition of Exuma Markets provides us with an opportunity to serve the communities of the Exuma Islands and Cays, and we look forward to delivering exceptional customer experiences to this new market. We eagerly anticipate the re-opening of Solomon’s Freeport in its new location in Downtown Freeport in early 2022. While this store was badly impacted by Hurricane Dorian in September 2019, our commitment to the Grand Bahama community never wavered. Both additions are a part of our strategy to grow our Company by establishing a network of smaller, neighborhood-focused stores, operating within a lower footprint and with lower investment and operating costs.”

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