The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

AML Foods has received a further $2m boost from Hurricane Dorian insurance recoveries as it posted a more than $1.6m bottom line reversal into the black for its just-ended 2021 second quarter.

The BISX-listed food retail and franchise group, shrugging off the impact from Dorian and COVID-19 as an "essential" business, said it had also restructured some $1.1m of its existing $9m preference share debt into a new 'class' where holders will receive interest-only payments until 2025.

"During the quarter, the company restructured its existing preference debt to allow for an interest only period until 2025. Preference shareholders who participated in the restructure were moved to a new Class E," AML Foods financial results said.

"Preference shareholders who opted not to participate in the restructuring will continue to receive annual principal payments in accordance with their Class C or Class D terms. A total of $1.1m preference shares were restructured and transferred to class E."

No explanation was given for the restructuring, which likely frees up cash flow by not having to make principal payments to the investors. However, the Solomon's, Cost Right and Domino's Pizza operator is one of the few businesses to increase profitability amid the devastation of COVID-19 as it uses its "essential" business status to fully recover from Dorian's impact on its Grand Bahama business.

Half-year net profits for the six months to end-October 2020 stood at $6.088m, a more than $7m reversal from the prior year's $1.232m Dorian-induced net loss. The results motivated AML Foods' Board to this week declare a four cents per share ordinary dividend, and a three cents per share extraordinary dividend, for a total of seven cents per share to be paid on January 5, 2021.

The New Year's windfall comes as AML Foods admitted it has yet to see the sales fall-off it has been projecting now for several quarters, although its chairman again forecast that revenues will soften during its present quarter that includes Christmas.

Franklyn Butler told shareholders: "We are achieving noticeable improvements with our focus on operational excellence, which has positively influenced our second quarter results. In addition, the COVID-19 pandemic continues to positively impact sales.

"Our expectation remains that revenues will soften in the third quarter and through 2021 given the country’s short-term economic outlook and the delays experienced with the re-opening of the tourism industry. Our Domino’s brand continues to be the hardest hit by COVID, brought on by early curfews and weekend lockdowns, which have traditionally been our peak selling times."

Turning to the three months to end-October 2020, he added: "Sales for the quarter were $42.9m, an increase of 10.9 percent for the same period last year. Net profit for the quarter was $1.3m compared to a net loss of $1.3m for the same period in the prior year.

"Our company’s cash balances remain strong, and we are continuing our focus on better expense management and improving store conditions to offset any impact of declining revenues. As we approach the holiday season, we are concentrating on the safety of our staff and customers, and will continue providing quality products and service."