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Last Updated: Feb 6, 2017 - 2:32:04 PM |
Nassau, Bahamas –March 18, 2009: Abaco Markets Limited released its fourth quarter results for the period ending January 31, 2009. Highlights for the quarter include:
- Net profit of $1.533m for the quarter compared to that of $628k for the same period the previous year.
- Net profit of $2m for the year compared to that of $2.177m for the same period the previous year.
- Sales increase to $26.46m for the quarter - an increase of 17.1% - along with an increase in customer transactions of 13% over the same period the previous year.
- Gross margin improvement by 0.9%, driven by reduction in shrink as a percentage of sales by 20% while the absolute shrink dollar amount remained the same as the previous year.
- Expenses continue to be well managed at 22.6% of sales for quarter compared to that of 24.6% of sales for the same period the previous year.
- Two one-time charges were recorded for the period including $250k related to the closure of Cost Right Abaco and $126k on a loan receivable relating to the sale of Cost Right Turks, which the Company is in discussions to restructure.
- Strong improvement in liquidity - with over $500k in the preference share redemption fund to date – as improvement in position is driven by sales, balance sheet management and the restructured preference share agreement.
Abaco Markets’ results continue to show steady, positive performance among its performing locations in the midst of challenging market conditions - recording a net profit of $1.533m for the quarter and $2m for the year. “Our fourth quarter results close out another year of positive results validating the commitment to the basics of our business to bring about steady progress in key areas of our operations,” says Mr. Gavin Watchorn, President, Abaco Markets Limited. “While we are pleased with the initiatives that have driven sales, improved operations and controlled expenses, we are also very cognizant of the current market conditions that continue to require careful management to navigate this time – a period no one is really certain how long it is going to last,” he adds.
Abaco Markets results were driven in large part by the significant increase in sales - up 17.1% over the same period the previous year – which the Company attributes to its offering savings on hundreds of everyday items. “Now, more than ever, customers are looking for real value on the items they need every day,” explains Mr. Watchorn. “Our ‘price cuts’ and club specials deliver that value and the increase in customer transactions really reflects the positive response to them,” he adds. In addition to the increase in sales, the Group’s expenses continue to be carefully managed - reducing slightly as a percentage of sales despite ever-increasing costs. “We are pleased with the Group’s control of expenses – particularly as utilities continue to rise with an increase of over $750k for the year,” says Mr. Watchorn. The Group’s gross margin increase of 0.9% was driven by a reduction in shrink as a percentage of sales by 20% - though the absolute shrink dollar amount remained the same as the previous year. “We are also beginning to see an improvement in our shrink performance with this quarter being the first in recent years that we actually maintained the dollar amount while it reduced as a percentage of sales,” explains Mr. Watchorn. “There is still much work to do in improving our performance in controlling shrink but we are encouraged by the trends and improvements in this area throughout the quarter,” he adds.
Abaco Markets’ Domino’s franchise sales also remain strong with efficiencies and savings from the closure of East Bay bringing immediate results as the franchise retained a majority of sales from that location. In addition, the recently reported closure of Cost Right Abaco refocuses resources on performing locations. “Our sales growth so far in 2009 remains comparable to Q4 and we continue to see positive movement in our liquidity – although the payment of business license fees in the first quarter is expected to have a short term impact,” says Mr. Watchorn. “It really has been about focusing on the basics of our business, delivering the best deals
possible for our customers. This has been and will continue to be our focus as the market conditions dictate special values and careful cost control more than ever,” adds Mr. Watchorn.
“This has been a tough year to operate in a market experiencing significant challenges,” says Mr. R. Craig Symonette, CEO and Chairman, Abaco Markets Limited. “Despite the challenges, however, we are finally realizing the economies of scale, improved group buying and efficiencies among our locations we have sought in recent years which is translating into steadily improving results,” he adds. “Our customers are seeing the difference, our shareholders certainly will note the changes in our position and it’s the result of a lot of things coming together,” says Mr. Symonette. “As reported earlier, we do expect a continued softening of the economy in the coming quarters which is likely to impact our results. However, the concerted focus on driving sales through pricing, controlling expenses and continuing to improve our shrink that has delivered the stability our Company needed remains our priority operating in the current market conditions,” adds Mr. Symonette.
© Copyright 2009 by thebahamasweekly.com
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