The Tribune

AML Foods is viewing its to year-to-date sales and profit increases as a “glass half-full” scenario, with its chief executive believing the group is “better prepared” for Christmas than in any previous year under his watch.

Gavin Watchorn told Tribune Business that the BISX-listed food and franchise group was “well-positioned” to exploit any improvement in the Bahamian economy, but acknowledged that there were numerous issues “hanging out there”.

The AML chief cited energy reform as prominent among these issues, and said that stable, consistent electricity supply was “just as important” as reduced costs due to the “thousands of dollars of equipment” the group has to replace annually due to power surges.

Describing these as “the hidden costs” of operating a company in the Bahamas, Mr Watchorn said price comparisons with rival Florida retailers were virtually impossible, and added: “The cost of doing business in the Bahamas is just too high.”

AML Foods saw its sales grow by $2.78 million or 8.08 per cent in the three months to end-October 2015 to $37.2 million, while figures for the first nine months of its current financial year were up almost 2 per cent at $107.288 million.

“We enjoyed some nice growth on the top-line, and continue to enjoy sales growth into the fourth quarter,” Mr Watchorn said. “The fact we’re able to be up a couple of points, we look at that as a glass half full.

“The Bahamian consumer is looking for quality and value, and we feel we’re consistently providing that to shoppers and seeing that reflected in the sales growth.”

Mr Watchorn added that AML Foods continued to focus internally, and on extracting increased efficiencies and managing its business better.

“Hopefully, when the economy turns, I think we will be well-positioned to take advantage of any improvement,” he told Tribune Business.

“There’s a lot of things hanging out there. We need employment, but we need long-term, sustainable employment. Energy reform is required.

“Business have listened, heard what’s on the table, and now let’s deliver on what’s been promised,” Mr Watchorn continued.

“Energy price reductions are important, but stability is just as important. We have thousands of dollars of equipment destroyed every year through inconsistent, unreliable power.

“That impacts on your business, your costs of operations. That’s a hidden cost of doing business, and energy costs are substantially higher than in the US.”

Mr Watchorn said it was impossible to compare Bahamian retail prices on ‘a level playing field’ with their Florida-based counterparts, and added: “The cost of doing business has to be addressed.

“It remains very high. The cost of doing business in the Bahamas is just too high.”

Despite the unfavourable trading environment, AML Foods’ profits for the quarter to end-October were up 75 per cent at $551,000, compared to $314,000 for the year-before period.

And, for the first nine months of its current financial year, the bottom line is up by 8.2 per cent at $3.072 million.

Mr Watchorn said the Christmas shopping ‘rush’ was likely to start this weekend, given that Christmas Day falls at the end of the week.

“We’re ready,” he told Tribune Business. “We’re probably the best prepared for Christmas since I took over the company. The buyers have done a great job getting product in on time, and the operations team have done great in getting it out on the floor.

“Our floor traffic remains good, and our transaction count remains good. I don’t think retailers will see that Christmas surge until Friday.

“We’re continuing to move in the right direction. We feel we’ve not reached our potential yet. The team is very focused on delivering returns we feel our company has the potential to do.”