Nassau, Bahamas - AML Foods Limited announced today the results for its fourth quarter ending January 31, 2013, recording a net profit of $1.06m after pre-opening costs of $356k, compared to $1.12m for the same period in the previous year, and YTD net profit of $2.42m after pre-opening costs of $590k, compared to a prior YTD net profit of $1.74m after pre-opening costs of $296k. Financial highlights include:

• Total sales increase of $8.03m or 26.3% for the quarter and YTD $29.48m or 29.9%;
• Gross margin dollars for the quarter were $11.4m or 29.6% of sales, reflecting an increase of $2.37m or 26.3% over the same period in the prior year. YTD gross margin dollars were $38.11m or 29.7% of sales, an increase of $8.9m or 30.5% over the prior year;
• SG&A expenses for the quarter increased by $2.04m or 26.1% due to the addition of new stores. YTD SG&A expenses increased by $7.78m or 28.6% 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 % of sales decreased YTD from 27.6% to 27.3%;
• Total dividends paid in amount of $926k YTD, $618k in May 2012 and $308k in January 2013.

“We continue to move our Company in a forward direction, even in this challenging and competitive environment”, says Mr. 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.”

Mr. Watchorn further stated, “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.”
Mr. 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 further 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% increase over prior years.”

Earlier this year, AML Foods Limited announced its decision to delay the opening of its first Carl’s Jr. store due to the current economic environment. It expects to recommence this project in the latter part of 2013.

About AML Foods Limited: AML Foods Limited was incorporated in 1989 in The Bahamas and is listed on the Bahamas International Securities Exchange. The Company and its subsidiaries are primarily engaged in the operations of retail and club stores offering dry and perishable food items and other consumer products, and the operation of a food franchise business. AML Foods Limited Food Distribution includes its retail division - Solomon’s Super Center Nassau, Solomon’s Fresh Market, and Solomon’s Freeport Neighborhood Stores – and its club division - Cost Right Nassau and Cost Right Freeport; the Company’s Franchise Division consists of eleven Domino’s Pizza locations in Nassau and Freeport. The registered office of the Company is at One Millars Court, off Shirley Street, Nassau, New Providence, Bahamas and the corporate office is at Town Centre Mall, Upper Level, Blue Hill Road, Nassau, New Providence, Bahamas, Tel: 242.677.7200.

About this report: This report may include “forward-looking statements.” While AML Foods Limited believes that the expectations reflected in such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from AML Foods’ expectations include external economic conditions, changes in the marketplace, changes in interest rates and operating costs and other unforeseen events or conditions that affect the Group’s performance.

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