AML reports drop in net profits for second quarter

Chairman of AML Foods Franklyn Butler said the company is looking forward to strong third and fourth quarters after registering a decrease in net profits for the second quarter ended October 31.

The financial results and the chairman’s report for the second quarter showed that while net profit was down by $1.2 million compared to 2020, it was 1.2 million more than the profit in the same period in 2019, before the pandemic.

“Additionally, sales were up five percent or $1.9 million in comparison to two years prior and our newest location in Exuma added $1.3 million to overall sales for the quarter. Sales for the franchise division also improved significantly over the previous year by 70.4 percent, but are down 6.8 percent compared to two years prior. These results are in line with our historical trends and we anticipate a strong Q3 and Q4, which are normally our best performing quarters,” Butler said.

“Selling, general and administrative expenses continue to improve year over year and were 29.3 percent for Q2 compared to 30.9 percent in the same quarter last year, demonstrating that our teams are continuing to manage our company’s expenses well. Shrink results were not as expected, but are beginning to show signs of improving as new processes are executed. For the food distribution division, the gross margin percentage was 33.7 percent, a decrease over the prior year gross margin percentage of 34.7 percent. Increases in prices due to the current supply chain issues have impacted margins.”

At the end of its financial year in April, AML Foods revealed it had recorded its highest net profit in a single year, pulling in $11.1 million. It was a staggering 673 percent increase in net profits over the 2020 financial year, which pulled in $1.4 million.

“Cash and bank balances were $10.1 million, a reduction of $3.0 million from April 30, 2021. This is in line with our normal operating cycle, where we normally invest in inventory in preparation for the busy holiday season. In this regard, inventory levels are up 3.8 percent compared to the prior quarter,” the Q2 financial report stated.

In July, the company announced plans to invest $3.5 million to reopen Solomon’s Freeport on York Street in Downtown Freeport, as a part of its strategic expansion plan.

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