Abaco Markets Limited released its first quarter results for the period ending April 30, 2009. Highlights for the quarter include:

• Net profit of $1.043m for the quarter compared to that of $82k for the same period the previous year.
• Sales increase of $2.2m over the same period the previous year - driven by a 12% increase in sales in the Food Distribution while Domino’s sales remain flat with one store less than the previous year.
• Gross margin improved by 1% and gross margin dollars increased by 14% - driven by improved buying and logistics.
• Expenses remained flat with the same period the previous year due, in part, to reductions in utilities among other stringent cost controls.
• Bank debt further reduced by $500k for the period, $400k of which came from proceeds from the sale of the Cost Right Abaco equipment and inventory.
• Continued improvement in the Company’s liquidity – with the achievement of $127k net cash position compared to the net overdraft position of recent years.  
• Interest costs reduced by 25% over the same period the previous year as a result of the reduction of the Company’s overdraft facility.
• Lease agreement finalised for the building which formerly housed Cost Right Abaco, which was closed in March, along with the sale of equipment and inventory.

“We are very pleased with our Group’s continued profitability - $1.043m for the quarter compared to that of $82k last year - despite the increasingly challenging economic climate,” says Mr. Gavin Watchorn, President, Abaco Markets Limited. The sales increase, up $2.2m over the same period the previous year, was driven by a 12% sales increase in the Company’s food distribution division and while its franchise division sales remained flat with the same period the prior year, this was accomplished with one store less.

“Our sales increase is being driven by the increase in customer counts – up 15% over the same period last year,” explains Mr. Watchorn. The Company’s gross margin also improved by 1% and gross margin dollars increased by 14% over the same period the previous year. “Our strategic focus on realizing the synergies among our locations is translating into better buying and improved logistics which is, in turn, allowing us to pass savings on to our customers while increasing margins for the Group. These synergies, the focus on the basics of our business and changes in the competitive market in which we operate are all adding up to the solid sales performance driving our results,” adds Mr. Watchorn.

The Group’s stringent cost controls, reductions in utility costs, a 25% decrease in interest rates and the continued significant reduction in its bank debt have also positively impacted the Company’s results. A total of $500k was repaid in the first quarter with a further $400k in repayments since April. “As of today, the remaining RBC loan balance is under $900k and we expect to repay this in full by the end of the fiscal year, 2009. This will, as a result, free up $60k per month in cash flow further improving our liquidity,” says Mr. Watchorn.