COST RISES TAKE 30% BITE OUT OF AML FOODS PROFITS

AML Foods yesterday revealed that increased costs and inflation took a bite out of its annual profits after net income for the 12 months to end-April 2023 declined by 30 percent year-over-year.

The BISX-listed food retail and franchise group, unveiling its fourth quarter and 2023 annual results, revealed that profits for the full-year dropped by $1.2m from $4.03m in 2022 to $2.803m this time around as multiple expense increases squeezed its margins.

Costs increased at a faster rate than sales. While sales for the year to end-April 2023 jumped upwards by 5.5 percent, rising by more than $9m to $184.951m as opposed to $175.3m the prior year, AML Foods’ cost of sales rose by $10m or 8.3 percent to hit $131.26m.

As a result, the Solomon’s Fresh Market and Cost Right operator suffered a slight decline in gross profits from $54.082m to $53.691m year-over-year.

And, with selling, general and administrative costs increasing by more than $1.75m or 3.7 percent, growing from $48.156m to $49.918m, the BISX-listed group’s net operating profit fell by more than $2m or 28 percent, dropping to $5.279m from $7.344m in 2022.

Gavin Watchorn, AML Foods’ president and chief executive, said in his message to shareholders: “We are pleased to report positive sales growth, driven by increases in overall customer counts. This is an indication that our shoppers are appreciating the value we are providing during difficult times, as well as the changes we are making to our product mix in stores.

“Margin, however, continued to be impacted by rising costs as well as other influences. Additionally, we are recording significant increases in energy, insurance and payroll costs, but overall continue to manage expenses well compared to the prior year.