Jul 2017 Financial News

T&T getting fifth Starbucks restaurant

Jul 12, 2017

Undaunted by a 30 per cent decrease in its profit after tax for the six months ended May 31, Prestige Holdings Ltd (PHL) plans to open another Starbucks restaurant in T&T.

These were among plans outlined in the company’s six-month consolidated unaudited financial results which showed profit after tax of $15.8 million, down from $22.9 million in the same period last year.

PHL chairman Christian Mouttet said the declining profit was due to a “difficult economic” environment which continues to weigh on many sectors of the T&T economy as well as consumer spending.

“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 TT dollar and the higher tax rate when compared to the corresponding period in 2016,” he said.

PHL operates 119 restaurants including KFC, Pizza Hut, TGI Fridays and Subway. Weighing in on its brand strength, Mouttet said the majority of its restaurants “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.”

He said the overall outlook given the economic challenges is that sales volumes will be maintained but he does not anticipate any improvement in T&T’s economy in the second half of 2017.

“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,” Mouttet said.

PHL’s cash and cash equivalents for the period amounted to $53.4 million and the company maintained its assets position compared to the previous year. Total assets amounted to $471 million compared to $482 million for the corresponding period in 2016.

Source:
Trinidad Guardian
Wednesday July 12, 2017

http://www.guardian.co.tt/business/2017-07-12/tt-getting-fifth-starbucks-restaurant