| Abaco Markets release second quarter results |
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| Thursday, 02 October 2008 13:53 | |
 Abaco Markets Limited released its second quarter results for the period ending July 31, 2008. Highlights for the quarter include:
"We are pleased with the positive sales growth and expense control trends for the second quarter of 2008 – particularly as the business environment continues to present significant challenges with rising costs and an increased and more competitive market,” says Mr. Gavin Watchorn, President, Abaco Markets Limited. The Company reports a net profit of $162k for the period compared to $510k for the previous year along with an increase in sales of 4% over the same period the previous year. In addition, an aggressive approach to contain costs to offset increases in utilities and other related costs has kept expenses well managed at 27.1% of sales for the quarter compared to 26.9% of sales for the same period the previous year. “However, while we are pleased with these trends, our profitability has declined compared to prior year as results have been impacted by the prevailing economic conditions and internal issues that we have been addressing since the first quarter,” explains Mr. Watchorn. The Company reports a decrease in net margin of 2% compared to the same period the prior year as a result of continued market price increases, reduced sales of high ticket items and an increase in shrink. In response, Abaco Markets’ strategic profitability plan is focused on group sales, cost containment measures and a comprehensive shrink programme. “We have maintained our profitability in an ever challenging marketplace primarily through aggressive purchasing, improved efficiencies and cost controls in every area possible,” explains Mr. Watchorn. One area recording a significant increase is shrink resulting from internal and external theft. “Obviously all retailers are challenged with theft as a part of doing business; however, we have seen a dramatic increase in recent months in theft – often of basic necessities - that is clearly indicative of the times,” explains Mr. Watchorn. “Unfortunately, while this is obviously a small percentage of customers and employees, it is negatively impacting our business, our staff and our customers and we are aggressively working to protect all of them with our comprehensive shrink programme,” adds Mr. Watchorn. The Company’s shrink programme, designed to combat this increase in shrink, includes enhanced security measures, the implementation of new technology and programmes and specialized loss prevention training for its team members. In addition to controlling costs and reducing shrink, Abaco Markets is also utilizing its strategic profitability plan to build sales by delivering real value, quality products and good service to its customers. “We are working with vendors on products and pricing to minimize the impact of increased costs on our customers and we are focusing on areas that will continue to improve service in our stores,” explains Mr. Watchorn. The group’s Solomon’s locations recently launched its new “price cut” – with lower ‘rolled back’ prices on key items each week – and expanded “special finds” at its Cost Right locations - all designed to offer options and special savings for its customers. T he Domino’s Pizza franchise is also moving ahead to build sales and better serve its customers in Eastern New Providence with the opening of its 10th Domino’s location in Seagrapes in mid-September shortly after the opening of its 9th Domino’s on Carmichael Road. Domino’s in Seagrapes, with dine-in seating and WiFi wireless internet access, has received positive feedback and is recording positive sales to date. The Company also continued to reduce its preference share debt by repaying an additional $420k during the quarter for a total of $840k YTD. Abaco Markets’ CEO and Chairman Mr. R. Craig Symonette is confident in the direction the Company is moving. “There has been good improvement along with positive trends for the quarter,” says Mr. Symonette. “However, we also recognize that we have to continue to aggressively manage the factors we can control that are contributing to the decline in profitability. To this end, we are focusing our resources on building sales, achieving important efficiencies and savings to contain costs and addressing shrink using our people and technology. While these economic conditions are expected to persist for some time yet, we are building on the initiatives that have been delivering positive results for improved profitability and continued sales growth ahead,” adds Mr. Symonette. Newer news items:
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