Express Catering Reports Higher Profit and EPS Despite Slight Dip in Spend Rate

Express Catering Limited (ECL), the operator of restaurants and bars inside Montego Bay’s Sangster International Airport, has posted stronger first-quarter results for fiscal 2026. The company achieved higher net profit and earnings per share (EPS) despite a marginal decline in passenger spending.

Key Details

For the August 2025 quarter, Express Catering recorded a net profit of over US $1.5 million, up from US $1.0 million a year earlier. Earnings per share rose to 0.092 US cents, up from 0.062 US cents, marking a 50 percent increase year-over-year.

Revenue reached US $6.8 million, compared with US $6.5 million in the prior year’s quarter, representing a 4.78 percent increase. The average passenger spend rate, however, edged down slightly to US$9.64, compared to US$9.70 in 2024.

The company credited its profit improvement to tighter cost controls and better supplier contracts. Its cost-of-sales ratio improved by 4.3 percentage points, falling to 25.65 percent from 29.95 percent in 2024.

Management said this was achieved through fixed-price ingredient contracts and closer monitoring of product standards. CEO Ian Dear and Chairman Andrew Spencer said the results show the benefits of disciplined procurement and operational efficiency.

Mixed Administrative Expenses

Administrative expenses presented a mixed picture.

• Wages and salaries declined by 15 percent, reflecting improved staff scheduling.

• Electricity costs rose by 44 percent.

• Credit-card commissions increased 64 percent after several outlets switched to a card-only payment model to improve financial controls.

Overall, total administrative expenses showed only a marginal increase.

Passenger traffic through Sangster’s departure lounge increased 5.52 percent to 704,567 travelers, up from 667,705 in the same quarter last year. The company anticipates that Jamaica’s recently revised travel advisory will further boost arrivals in the upcoming months.

Background

Express Catering operates branded food and beverage outlets within Jamaica’s busiest airport. Its performance is closely tied to tourism trends and passenger volumes.

In fiscal 2025, the company experienced a 7 percent decline in revenue due to softer travel demand, but management expects fiscal 2026 to show stronger results, helped by growing airlift and new hotel developments on the island.

More than 1,000 new hotel rooms added in 2025 are now fully in circulation. Both Dear and Spencer expect these additions to help drive sales as the winter tourist season approaches.

Private hotel and villa developments also continue at a steady pace, which ECL believes will generate increased passenger traffic and higher demand for its airport dining services.

Analysis

Express Catering’s results show that strong cost management can offset modest revenue pressures. While passenger spending softened slightly, ECL’s operational discipline allowed it to expand margins and deliver record profitability.

The continued recovery of Jamaica’s tourism sector, coupled with expected increases in hotel capacity and air arrivals, supports a positive outlook for the company’s fiscal 2026. However, rising utilities and card-processing fees highlight the need for continued vigilance in managing operating costs.

Our Opinion

Express Catering’s performance underscores the resilience of Jamaica’s tourism-linked businesses. A 50 percent profit increase despite marginally lower spending per passenger demonstrates effective cost control and strategic management.

Looking ahead, stable tourist arrivals and new hotel inventory should strengthen ECL’s revenue base. Continued emphasis on efficiency and digital transactions will be vital in sustaining profitability amid fluctuating global travel trends.

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