Express Catering Limited
Second Quarter FY2026 · Six Months Ended November 30, 2025 · Unaudited
Hurricane Melissa Grounds ECL’s
Busiest Season at Sangster Airport
Category 5 Hurricane Melissa struck Jamaica’s tourism heartland on October 28, 2025 — cancelling flights, closing sections of Sangster International Airport and slashing passenger numbers by 157,000 in Q2 alone. Express Catering posts a Q2 net loss of US$536,680 but maintains a positive six-month YTD profit of US$974,870, supported by immediate cost containment and strong cost-of-sales discipline.
Second Quarter Interim Report to Shareholders · Ian Dear, CEO/Director & Andrew Spencer, Director · November 30, 2025
The Directors of Express Catering Limited (ECL) are pleased to present the Second Quarter report dated November 30, 2025, on the operations of the company for fiscal 2026. On October 28, 2025, Hurricane Melissa, with Category 5 force winds, pummeled the western end of Jamaica, leaving severe destruction, casualties and homelessness for many. Express Catering and the tourism industry, in general, were not spared.
Hurricane Melissa — Direct Impact on Operations
The company experienced damage to the physical structure at Sangster International Airport. Parts of the airport have been repaired and returned to use, but sections remain closed and will not be returned to operation until mid-2026.
The more significant impact was the damage done to tourism partners. The available room count was severely reduced due to damage to hotels and other accommodation operators. Stopover visitor arrivals were cancelled as a result, and it will be some time into the second half of calendar 2026 before the full complement of room count is restored.
Q2 & Six-Month Performance Highlights
Performance Summary (US Dollars)
| Metric | Q2 FY2026 Nov 30, 2025 |
Q2 FY2025 Nov 30, 2024 |
6M YTD FY2026 | 6M YTD FY2025 |
|---|---|---|---|---|
| Revenue | US$2,965,112 | US$4,978,924 | US$9,757,267 | US$11,458,925 |
| Gross Profit | US$2,161,198 | US$3,535,937 | US$7,217,618 | US$8,077,637 |
| Cost of Sales Ratio | 27.11% | 29.0% | 26.02% | 29.5% |
| Net (Loss)/Profit | (US$536,680) | US$443,475 | US$974,870 | US$1,453,030 |
| Earnings Per Share | (0.033) US cents | 0.027 US cents | 0.060 US cents | 0.089 US cents |
Passenger Traffic Impact
| Period | FY2026 | FY2025 (Prior Year) | Decline |
|---|---|---|---|
| Q2 Passenger Count | ~157,000 fewer | Prior year level | -157,000 |
| November shortfall alone | — | — | ~133,000 |
| 6-Month YTD Passenger Count | 1.03 million | 1.15 million | -120,000 (-10.5%) |
As a result of the foregoing, the company returned a Net Loss for the Quarter of US$536,680 for a Loss Per Share of 0.033 US cents. This compares to a Net Profit for the similar Quarter in the prior year of US$443,475 and an Earnings Per Share (EPS) of 0.027 US cents. Revenue generated for the Quarter was US$2.97 million compared to the US$4.98 million generated for the similar period in the prior year.
Six-Month YTD Position
The six-month YTD position was impacted by the hurricane as well. Revenue generated was US$9.76 million compared to US$11.46 million for the similar period in the prior year. The Net Profit realised for the six-months YTD was US$974,870 for an EPS of 0.060 US cents. For the similar period in the prior year, Net Profit was US$1.45 million for EPS of 0.089 US cents.
November 2025: The Month of the Hurricane
November accounted for all of the YTD passenger and revenue decline. The result for November was a net loss of just under US$500,000. The company was proactive in instituting cost containment initiatives immediately after the Hurricane, which helped to deliver a net positive EBITDA position for the month despite the revenue shortfall.
Cost Management & Operating Efficiency
Cost of Sales Performance — A Highlight of the Quarter
The company is pleased with the Cost of Sales ratio for both the Quarter and 6-months positions. 27.11% was recorded for the Quarter and 26.02% for the 6 months. The company is quite happy with these ratios and will build on the processes that realised these results.
General and administrative expenses are in line with expectations. Notably, labour costs are trailing prior year totals because of savings initiatives. Processing costs for Credit Cards increased due to the higher concentration of electronic payment options, and electricity charges have increased as a ratio. Cost containment has been added to the areas of focus for all team members, including utilities.
| Expense Category | Q2 FY2026 (US$) | Q2 FY2025 (US$) | 6M YTD FY2026 | 6M YTD FY2025 |
|---|---|---|---|---|
| Administrative Expenses | 1,135,834 | 1,401,697 | 3,131,375 | 3,255,983 |
| Promotional Expenses | 14,464 | 88,880 | 25,367 | 192,727 |
| Depreciation & Amortisation | 926,467 | 941,539 | 1,852,934 | 1,883,078 |
| Finance Costs | 704,254 | 632,620 | 1,330,764 | 1,273,594 |
Outlook
The winter tourist season has commenced. It was the expectation that this would be the best on record to date, in terms of stopover visitor arrivals as well as top line revenue, but the hurricane has dampened this outlook.
Winter Season 2025/2026 Revised Outlook
Instead of a record season, stopover totals will trail prior year totals by up to 40% for the winter season. The company expects a gradual return to prior year visitor totals towards the end of calendar 2026.
The company is continuing with finishing the build-out of new concepts that are in progress, maintaining its strategic development agenda despite the external disruption.
Balance Sheet Position
|
Total Assets US$59.7M Up from US$58.9M at May 31, 2025 (audited year-end). Non-current assets of US$38.4M include property, right-of-use assets and intangibles. Current assets of US$21.3M reflect growth in amounts owing by related companies to US$19.9M. |
Total Equity US$11.2M Improved from US$10.2M at May 31, 2025, driven by the six-month YTD net profit of US$974,870. No dividends were paid during the period (prior year: US$1.0M paid). Retained earnings now stand at US$11.1M. |
|
Total Liabilities US$48.5M Decreased slightly from US$48.7M at year-end. Long-term lease liabilities of US$21.8M reflect ongoing IFRS 16 obligations. Bank overdraft fully cleared (nil vs US$260,843 at year-end). |
Cash & Bank Balance US$129,760 Decreased from US$496,571 at year-end, reflecting the combined effect of hurricane-reduced revenues and continued lease and interest obligations. Net operating cash inflow for the six months was US$1.4M. |
|
Ian Dear CEO / Director Express Catering Limited |
Andrew Spencer Director Express Catering Limited |
ECL Q2 FY2026 At a Glance — Six Months Ended November 30, 2025 (US$)
| Q2 Revenue | US$2.97M | 6M YTD Revenue | US$9.76M |
| Q2 Net Loss | (US$536,680) | 6M YTD Net Profit | US$974,870 |
| Q2 EPS | (0.033) US cents | 6M YTD EPS | 0.060 US cents |
| Q2 Cost of Sales Ratio | 27.11% | 6M Cost of Sales Ratio | 26.02% |
| Total Assets | US$59.7M | Total Equity | US$11.2M |
| Q2 Passenger Shortfall | ~157,000 | Winter Season Outlook | Up to -40% vs prior year |
Reproduced from Express Catering Limited Q2 FY2026 Interim Report to Shareholders (Six Months Ended November 30, 2025 — Unaudited) · Businessuite Online · businessuiteonline.com