Apr 2017 Financial News

Prestige profits hit by higher food costs

Apr 18, 2017

Prestige Holdings Limited has recorded a six per cent increase in revenue for the first quarter of 2017.

According to published first quarter results, the company generated $253 million for the first three months of 2017 compared t0 $238 million for the comparable period in 2016.

The company however registered a lower after tax profit for the first three months compared to 2016, moving from $12.3 million in 2016, to $9.2 million in 2017—a decline of 25 per cent.

Commenting on the first quarter performance, chairman Christian Mouttet said: “Our first quarter performance is consistent with the conditions we have been experiencing since the second half of 2016, as mentioned in my 2016 year end report—higher food costs and other inputs as a result of the movement in the exchange rate and higher commodity prices” The Prestige chairman noted that as part of the company’s attempt to “recover some of these higher costs” it had began the process of re-engineering some of its menu offerings.

He added: “In this difficult economic environment, our goal has been to maintain strong transactions at all our brands, which for the most part we have been able to achieve, over the last four quarters.

Our recent menu changes should allow us to continue to achieve this whilst also improving our overall contribution.”

Mouttet said the adjustment to the corporation tax rate also affected the company’s after tax profit position.

“Additionally, the increase in the tax rate from 25 per cent to 30 per cent has had an adverse effect on our after tax profit when compared to the same period last year,” he said.

Source:
Trinidad Guardian
Saturday April 15, 2017

http://www.guardian.co.tt/business/2017-04-15/prestige-profits-hit-higher-food-costs