Senior Research Analyst at JN Group, Fay Samuels, says a boom in post-COVID travels has resulted in a boost in Express Catering’s financial performance.

Express Catering is a Margaritaville Caribbean Group subsidiary and has been the dominant food and beverage provider at the Sangster International Airport since 2011.

Its offerings include Cinnabon, Auntie Anne’s, DQ Grill and Chill, and local favourites such as Tastee’s and Juici Patties. The company has exclusive arrangements for the post-security sections of the airport as well as a significant share of the pre-security offering.

The company was severely impacted by the closure of Jamaica’s borders in 2020 due to the COVID-19 pandemic. ECL’s financial year ends in May, therefore, its 2020 operations were not severely impacted as a large part of that year’s revenue was earned before the lockdowns in March.

However, for 2021, the company recorded a comprehensive income loss of US$1.7 million. 

Speaking on Taking Stock with Kalilah Reynolds, Samuels said that the reopening of the economy and a boom in tourism has propelled the company’s revenues.

For the first six months of ECL’s financial year 2023, revenues 49% from US$6.1 million the prior year to US$9.1 million.

The company’s gross profits were also up 52% from US$3.8 million for the same period last year to US$5.8 million this year.

“This was mostly driven by the boom in tourism… Data from the Jamaica Tourist Board shows that up to October last year, total visitors to Jamaica was already 134% greater than in 2021,” Samuels said.

“So we are seeing where the sector is recovering at an even faster rate than anticipated. The Ministry of Tourism is also projecting that Jamaica is expected to meet the updated growth targets of 5 million visitors even before the previously projected 2025 timeline,” she added.

She also noted that ECL was able to improve its efficiency ratio, which shows how well the company was able to control its expenses. 

Expansion plans

The company’s positive results come as it is exploring plans to expand its footprint at Sangster’s International Airport and across the island.

Samuels noted that ECL recently signed an agreement to increase their footprint at Sangster’s to include the Bob Marley One Love Food and Lifestyle experience. The expansion will include catering to the general public at the airport and passengers in the arrivals area. 

“They’re also in talks to expand beyond the airport. So, this could mean you could get your Cinnabon and Auntie Anne’s in Half-Way Tree somewhere like that,” Samuels noted.

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