The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

AML Foods is paying a total $2.5m to acquire a Governor’s Harbour food store in a move that will facilitate its expansion into Eleuthera, its latest financial statements have disclosed.

The BISX-listed food retail and franchise group, unveiling its figures for the half-year and three months to end-October 2024, said it has agreed to pay $1.975m to purchase the operations of Burrows One Stop Shop Grocery Store and a further $525,000 for the land and building from which it operates. A $250,000 deposit, representing 10 percent of the combined purchase price, has already been paid into escrow prior to closing

“During the quarter, the company entered into an asset purchase agreement to acquire the assets of Burrows One Stop Shop Grocery Store located at Queen’s Highway, Governor’s Harbour, Eleuthera, in the amount $1.975m,” AML Foods told shareholders in its just-released financials.

“Simultaneously, the company also entered into a land purchase agreement to purchase the land and building of Burrows One Stop Shop Grocery Store for $525,000. The completion of both transactions is subject to due diligence and the final price may be adjusted based on closing procedures.”

Gavin Watchorn, AML Foods president and chief executive, could not be reached for comment but, in a message to investors, said the deal has yet to close and hinted that this might now happen in 2025. “We are excited to enter the Eleuthera market in the new year and are looking forward to finalising the purchase of Burrows One Stop Grocery Store in Governor’s Harbour,” he added.

“Once the sale is finalised, the store will undergo a complete renovation and reopen as Eleuthera Markets.” The impending acquisition is following a similar template to that employed by AML Foods when it moved into Exuma through the previous purchase of Exuma Markets. It has focused on entering high-growth Family Island markets by buying existing, well-established businesses that align with its neighbourhood store model.

Meanwhile, AML Foods showed an improved half-year and second quarter 2025 performance. Profits for the six months to end-October 2024 jumped from a minimal $143,000 during the comparative period for 2023 to $1.557m, while the loss for the final three months of that period was cut by more than two-thirds - reducing from $547,000 to $146,000.

“Sales for the period were $43.9m, an increase of $0.9m or 2 percent compared to the same quarter last year. The company recorded a net loss of $0.1m compared to a net loss of $0.5m for the same quarter last year,” Mr Watchorn said.

“Sales for the period in certain stores were impacted by a slower than usual tourist season in comparison to recent years. We also continued to be affected by inflation within our expense base. However, our continuing improvements in shrink and margin management are helping to offset these expense pressures and increases.

“Historically, the second quarter has been our weakest period, but we are encouraged by the progress we have made that positions us to deliver improved operating results. As we move into our stronger quarters, the peak tourist season and the holidays, our team is well prepared and looking forward to a successful year’s end.”

And, looking beyond the financials and operations, Mr Watchorn added: “On November 1 we celebrated the opening of Cost Right Nassau in its new location on the East West Highway, and initial sales have been promising. The opening of the store marks the end of our store remodel programme.

“During the quarter we also launched our new online food service portal, Chef Direct, in Exuma, Abaco and Eleuthera. Chef Direct has been well received by our customers and will launch in New Providence and Grand Bahama in early 2025.”