Trinidad & Tobago's largest restaurant operator's profits fell by 31% in first half of 2017
Tuesday, July 11 2017 @ 11:21 PM AST
Contributed by: DeoBhagan
From PHL Chairman Christian E. Mouttet, July 4, 2017:
CONSOLIDATED UNAUDITED FINANCIAL PERFORMANCE
For the first half 2017 Group revenue increased by 6% to $505 million and profit before tax decreased by 24% to $27.5 million, from $35.8 million in the previous year. Profit attributed to shareholders decreased by 31% to $15.8 million, from $23 million the year before. Earnings per share were 26 cents, 30% below that earned for the corresponding period in 2016. These results were generated from an average number of 119 restaurants.
The difficult economic environment in Trinidad and Tobago continues to weigh heavily on many sectors of the economy and on consumer spending. Despite this trend, across the majority of our restaurants we experienced stable or improved sales as a result of the strong market position of our brands, as well as attractive and innovative value food offerings. However, profitability fell short of prior year as a result of higher food costs and other inputs as a result of higher commodity prices, the depreciation of the Trinidad and Tobago Dollar and the higher tax rate, when compared to the corresponding period in 2016. These adverse factors were outlined in my First Quarter Statement, along with some initiatives to address our higher costs. As we implement these initiatives we are also very focused on maintaining our strong market position and on driving sales and transactions of all our brands.
On 29 May 2017, we opened our fourth Starbucks restaurant at Gulf City Mall in San Fernando, and our plan is to open at least one more Starbucks restaurant in this financial year. Additionally, in April we completed the remodel our KFC Independence Square restaurant.
While we do not anticipate any improvement in the Trinidad and Tobago economy in the second half of 2017, we expect to maintain the positive sales experienced in the first half. We also expect that the initiatives to manage our higher costs coupled with new and innovative menu offerings will yield an improved performance in the second half but the full year’s performance will not likely be comparable to the prior year.