Durrant Pate/Contributor

Sangster International Airport concessionaire, Express Catering Limited (ECL), is seeing a marked increase in the spend rate per passenger passing through lounge area of the airport, giving impetus for a positive outlook for the foreseeable future.

The spend rate per passenger for the August first quarter returned US$8.69 per passenger compared to US$7.89 for the similar period in 2022. This was a 9.5 per cent increase in passenger spend rate and comes against the backdrop of an already concentrated flight operating window of about six hours.

The ECL team was able to keep pace with the increased number of travelers and convert more of the travelers into customers or capture more revenue from each customer. The Montego Bay based company boasted that this increase spend rate is reflected in its sharp 29 per cent rise in net profits for the quarter, which closed on US$843,114, up from US$652,841 for the same period in 2022.

Total passenger pass through

As a result, earnings per share (EPS) rose from US$0.040 to US$0.051 for the review quarter. Total passengers accessing the post security departure lounge of the airport during the first quarter were over 724,600 or 16.4 per cent higher than the similar period in the prior year and 18.34 per cnet higher than the similar period in its benchmark pre-COVID19 year of 2019.

This performance produced revenue of US$6.40 million compared to US$4.91 million in the similar period last year. Cost of ingredients as a ratio of revenue improved appreciably, registering a 2.71 per cent improvement for the quarter to reach a gross profit percentage of 67.22 per cent, up from 64.51 per cent in 2022.

“ECL has resumed forward purchasing arrangements that should keep prices holding for a longer duration. While we continue to have cost of sales challenges, further improvements in this cost category are expected in the fiscal year, as similar arrangements with more suppliers are re-instated,” the management explained in its just released first quarter report to shareholders.

Additionally, the increase in sticker prices that commenced from last year had more time to impact the overall results. General and administrative expenses also increased to support the increase in revenue.

Phased opening of new catering concepts

Starting late 2022, ECL had phased openings of several of its catering concepts, which were relocated to the new food court in the post security lounge at the airport. In December 2022 the company completed constructing the Guitar Bar which was open to the public in time for the Christmas season.

Later in July this year, the first Bob Marley’s One Love food and beverage experience opened to the travelling public in the revamped food court. The finished product is an authentic offering, with cuisines from Jamaica and the rest of the Caribbean, which has been very well received.

ECL is now focused on delivering the final two experiences that will complete the food court renovation initiative. The Bento Sushi, an international fast casual dining experience of an Asian origin and Freshens and a casual health conscious juice brand, which are scheduled to be in place by the first quarter of calendar year 2024.

The outlook for the rest of fiscal 2024 is buoyant, which the board and management team assert is based on the pronouncement about visitor arrivals from all tourism authorities, including the Ministry of Tourism and its affiliated entities, Jamaica Tourist Board and the Jamaica Hotel and Tourist Association.