The Tribune

AML Foods Limited recorded a 26 per cent total sales increase for its fourth quarter ending January 31, 2013, during which it recorded a net profit of $1.06 million.
 The BISX-listed food and retail group in revealed in its fourth quarter financial results a net profit of $1.06m after pre-opening costs of $356k, compared to $1.12m for the same period in the previous year. AML’s fourth quarter results also revealed a tear-to-date net profit of $2.42m after pre-opening costs of $590k, compared to a prior year-to-date net profit of $1.74m after pre-opening costs of $296k.
 “We continue to move our company in a forward direction, even in this challenging and competitive environment”, said Gavin Watchorn, President & CEO, AML Foods Limited.

“The past 18 months has been very exciting for us, opening three new stores and growing our company’s sales base significantly. Now, we are in a period of focusing on the fundamentals of our business and we will channel our energies towards improving our day to day operations. With so much of our resources directed towards expansion, we have been somewhat distracted from our core functions. We have spent the 1st quarter focusing on improving our customer service, product consistency levels and shrink. I expect that we will see the benefits of this focus in our results in 2013,” said Mr Watchorn.

AML revealed a total sales increase of $8.03m or 26.3 per cent for the quarter and tear-to-date $29.48m or 29.9 per cent. “Gross margin dollars for the quarter were $11.4m or 29.6 per cent of sales, reflecting an increase of $2.37m or 26.3 per cent over the same period in the prior year. Year-to-date gross margin dollars were $38.11m or 29.7 per cent of sales, an increase of $8.9m or 30.5 per cent over the prior year,” the company said.

“SG&A expenses for the quarter increased by $2.04m or 26.1 per cent due to the addition of new stores. Year-to-date SG&A expenses increased by $7.78m or 28.6 per cent primarily due to the addition of new stores as well as some same store expense increases in utilities and repairs and maintenance. SG&A, as a percentage of sales decreased YTD from 27.6 per cent to 27.3 per cent,” the company said.
 Dionisio D’Aguilar, Chairman, AML Foods Limited, added, “The economic environment that we are currently operating in continues to be challenging and highly competitive. The grocery business is being overbuilt, once again. This will lead to an overly competitive environment in the foreseeable future as different stores tussle for market share. In addition, high utility costs continue to impact businesses ability to yield expected returns. However, despite these issues, we are confident that we will continue to record improvements in our returns to our shareholders in 2013, with expected profits of $3.5m to $4.0m.

“Our company has responded to these challenges by refocusing on the core fundamentals of our business – customer service, product consistency and shrink control,” added Mr D’Aguilar. “We are committed to our customers in all of our brands and believe that we deliver on both quality and value everyday to our many loyal customers.” Mr D’Aguilar added “We are pleased to announce a final dividend of $0.04 per share, payable on May 03, 2013 to shareholders on record of April 26, 2013. This will result in a total dividend payment of $0.06 per ordinary share for 2012, a 50 per cent increase over prior years.”