October 4, 2024

Margaritaville (Turks) Limited (MTL)

Audited financials for the year ended May 31, 2024:

Margaritaville (Turks) Limited (MTL) for the year ended May 31, 2024, reported an 8% increase in Revenue totaling US$7.84 million compared to US$7.26 million in the corresponding period last year. Revenue for the fourth quarter had a 13% increase to close at US$2.59 million compared to US$2.28 million for the comparable quarter of 2023.

Cost of Sales amounted to US$2.31 million (2023: US$2.24 million), this represents an increase of 3% year over year. Consequently, gross profit increased by 10% to US$5.53 million compared to US$5.02 million for the year ended May 31, 2023. The company booked gross profit of US$1.61 million for the fourth quarter versus US$1.37 million reported for the similar quarter of 2023.

Administrative Expenses increased by 20% to close at US$4.58 million (2023: US$3.83 million), while Depreciation and Amortization expenses decreased by 11% from US$262,869 in 2023 to US$232,998 in the period under review. As a result, total expenses for the year ended May 31, 2024, amounted to US$4.85 million, a 17% increase relative to US$4.13 million reported in 2023.

Operating profit for the year ended May 31, 2024, amounted to US$678,057, a 60% decrease relative to US$1.69 million reported in 2023. Operating profit for the fourth quarter amounted to US$87,961 (2023: US$1.15 million).

Finance cost for the year ended May 31, 2024, amounted to US$20,943, a 2% decrease relative to US$21,465 reported in 2023. Finance cost for the fourth quarter amounted to US$4,584 (2023: US$5,851).

No taxes were reported. As such,  Total Comprehensive profit for the year amounted to US$657,114, a 61% decrease from the US$1.67 million reported in 2023. For the fourth quarter, Total Comprehensive profit was US$135,205 (2023: US$490,550).

Consequently, Earnings Per Share for the year ended May 31, 2024, amounted to US$0.01 (2023: EPS: US$0.02), while Earnings Per Share for the quarter totaled US$0.002 (2023: EPS: US$0.007).

Notably, MTL’s stock price closed the trading period on October 03, 2024, at a price of J$15.13 with a corresponding P/E ratio of 9.97x.

Balance Sheet Highlights

The company’s assets totalled US$6.78 million (2023: US$6.05 million). The increase in total assets was influenced by ‘owing by related companies’ growing by US$1.52 million, while ‘Inventories’, ‘Trade and other receivables’, and ‘Property, plant and equipment’ declined by US$310,912, US$213,729 and US$183,558 respectively, to partly offset the movement during the period.

Shareholder’s equity was US$4.63 million (2023: US$3.97 million), representing a book value per share of US$0.07 (2023: US$0.06).

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