Business

$28.8 million second quarter net loss for Everything Fresh

Sunday, August 25, 2019

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Food importer and distributor Everything Fresh (EFL) reported on Wednesday last (August 14), an unaudited net loss of $28.8 million for the second quarter ended June 30, 2019, following a net profit of $30.4 million recorded in the corresponding period last year.

Managing Director Courtney Pullen, in reporting to shareholders, indicated that EFL for the quarter under review reported mixed results as it pursued the consolidation and integration of the acquisition of Meat Experts into the business. In February of this year, EFL acquired 100 per cent of St Catherine-based abattoir and is currently operating at approximately 30 per cent of capacity.

“The total loss for the six months ended June 30, 2019 was $28.5 million; this is the net effect of a profit of $29.0 million attributed to the traditional distribution business and a loss $57.7 million in the Meat Experts division,” Pullen stated in the report.

“The six-month cost of sales for the Meat Experts division of $159.5 million includes second quarter one-off charges of $7.3 million,” he continued.

Pullen added that while overall sales for the second quarter grew five per cent over the comparative period in the prior year, of the current period's amount of $520.5 million, $458.1 million is attributable to the traditional distribution business and $62.4 million relates to the new Meat Experts division.

He further indicated that sales of the traditional distribution business dipped by 7 per cent when compared with the prior year as one of its major hospitality industry relationships closed for a major refurbishing exercise and will reopen early in the fourth quarter of this financial year.

“In the second quarter of 2019, the company entered into a wholesale relationship with a new customer for a few select items; the sales to this customer represented new business, however the margins were reduce to facilitate the venture,” Pullen stated.

The gross margin in the trading division for the first six months ended June 30, 2019, decreased by 14 per cent, a one percentage point when compared to the corresponding period in the prior year

“In addition, depreciation increased by $1.6 million due to the increased capital expenditure, electricity increased by $3.1 million due to the increased refrigeration usage and exchange losses increased by $3.6 million due to net foreign currency outflows that took place in the second quarter over a period when the Jamaican dollar weakened against the US dollar,” Pullen said.

Earnings per share ended at 3.69 cents, a decreased compared to the 3.90 cents recorded in the prior corresponding period. — Abbion Robinson


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