AML Foods Limited has faced a sales slump year-on-year and net profit decline, according to company Chairman Franklyn Butler’s quarter one 2022 report, but he explained that those numbers are in line with the company’s projections and were ahead of 2019 numbers.

The report explained that AML’s first quarter ended July 31 and sales for that quarter stood at $42.9 million compared to $46.8 million in the same quarter of 2020.

“While sales were down the prior year by $3.9m or 8.3 percent, sales were in line with budget and were ahead by 3.7 percent or $1.5m on a pre-pandemic basis two years ago,” Butler said.

“Sales for the franchise division continued to improve over last year, when there were government-imposed COVID-19 restrictions.”

Butler also revealed that net profit for the quarter softened to $0.9 million compared to $4.8 million in the same quarter last year, though last year’s quarter included $2.5 million of “hurricane insurance recovery income and buoyant revenue attributable to the COVID lockdowns”.

The company reported that based on pre-pandemic levels, its net profit was up $0.8 million compared to two years ago.

“Selling, general and administrative (SG&A) expenses continued to improve and were 28.6 percent of revenue for the quarter, compared to 29.6 percent for the same period two years prior,” Butler explained.

“In the previous year, SG&A expenses, as a percentage of sales, were relatively low, driven primarily by the large sales volumes generated during the same period. Shrink results, while improved, continue to be a core focus of the management team.”

The company retains strong cash and bank balances at $12.6 million despite a decrease of $1.1 million from April 30.

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