Dionisio D'Aguilar
Net profit for AML Foods Limited dropped 3 percent during the first quarter of 2011, with the BISX-listed company recording $320,000 in the period ended April 30, 2011.
The figure was down from the one recorded in the first quarter of 2010, when the company posted $300,000 in net profit.  Chairman of AML Foods Dionisio D'Aguilar said direct and indirect challenges affecting the company and the retail market in general will continue to affect its performance for the remainder of the year.

"There is much happening in the Bahamian retail market at the moment," D'Aguilar said in a statement in the company's quarterly report.  "From continued road works disruptions, increased utilities costs and the most competitive market seen in years, retail businesses are under a great deal of pressure.  We expect these factors to impact our sales and earnings for the remainder of this year until the projected economies of scale accumulate from our newest store, Solomon's Fresh Market."

Net operating profit was also up during the period, rising 2 percent from $449,000 a year ago to $458,000 in 2011.  Gross profit was also higher during the first quarter, increasing 5.7 percent to $6.5 million from $6.1 million the corresponding period a year ago.  Sales were also up 5.4 percent from the first quarter of last year according to the report, despite challenges in the Grand Bahama market and increased competition.

"Sales growth was strong in our core grocery category, driven by an increase in average transactions.  This is an indicator that our customers recognize that we are leaders when it comes to providing value, quality and savings," D'Aguilar said in the report.  "Sales in our Domino's stores also increased, reversing the recent trend of sales declines.  Growth in these core areas compensated for sales decreases in our clothing and general merchandise departments."

The performance comes after AML Foods recorded a $1.42 million net income increase in the fourth quarter of 2010.  During that period, the company saw profit rise by 41 percent from the $1 million realized during the same year-ago period.  The BISX-listed company is aware of the challenges that lies ahead, but is still committed to growth in the long term.

D'Aguilar continued, "While the short term outlook continues to be challenging, we are confident that the strategic decisions we have made will lay a solid foundation for future earnings growth.  Our brands are market leaders and our customers and the Bahamian public associate them with quality, value and savings."

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