Nassau,  Bahamas - AML Foods Limited announced today the results for its third quarter ending October 31, 2013, recording a net loss of $833k, compared to a net profit of $410k for the same period in the previous year.

Mr. Dionisio D’Aguilar, Chairman AML Foods Limited says, “Our results are reflective of significant challenges that we are experiencing, both within our industry and the Bahamian economy. Increased taxation directly impacted our business by approximately $480k during the 3rd quarter, as a full period of increased business license fees, customs processing fees and other increased taxes took effect. In turn, our Bahamian suppliers have increased their prices to offset their increased taxes, but the Bahamian consumer cannot absorb price increases and therefore food retailers are being squeezed. This is reflective in the reduction of our margin from 29.8% last year to 28.6% in the current quarter.”

“Our same store sales decreased by 2% during the quarter, driven primarily by decreases in average spend” added Mr. D’Aguilar. “There is a defined shift in consumer spending habits from discretionary spending to spending on essentials and bread basket items. Under The Price Control Act, food wholesalers and retailers are forced by government regulation to subsidize food costs by selling a large portion of their sales far below their expense base. As consumers turn more towards these bread basket items, our margins will come under greater pressure.”

Gavin Watchorn, President & CEO, says, “The economic environment that we are operating in remains challenging and competitive, and we expect these conditions to define the market for the medium-term. To combat the challenges of the current environment, we are focused on improving our efficiencies and on initiatives that will further enhance our competitiveness. Our focus to our customers is to continue to provide them value and quality, even during these difficult times. This focus is what sets us apart from our competitors, and will ensure that we emerge from this period in good
health.”

“Despite our current challenges our management team is focused on staying on our strategic path, making the difficult decisions that are required and moving our Company in a positive direction”, says Mr. D’Aguilar. “We are listening to our customers and are committed to appealing to the diverse market that we serve. The economy is more uncertain now than ever with the impending implementation of VAT but we will continue to manage well what is under our control. This can be seen in our same store expenses, where despite significant upward pressures and increased business license fees, they have remained the same in dollars terms as the corresponding period last year; and in our shrink numbers, where despite a surge in stealing, they have been reduced by 11% year to date over 2012”.

During the quarter, the Company agreed a sale for its final property in Abaco, incurring a loss of $240k on the sale, which was recorded in the current period. “We have been attempting to sell

this building for many years, and agreed a price of $1.9m with A&S Holdings Limited for the sale,” says Mr. Watchorn. “The asset was not producing an adequate return for our shareholders. The funds will be used to prepay our 2014 preference share redemption, which will lower our 2014 interest costs.”

Mr. Watchorn added that construction of the Company’s first Carl’s Jr. Restaurant was progressing well and was on schedule to open in the second quarter of 2014. “The changes we are seeing in the food industry are reinforcing our strategy to diversify our business from food retail” says Mr. Watchorn.
Given the loss incurred for the quarter, the Board of Directors decided that a dividend would not be paid for the quarter.

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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