Prestige Holdings incurs 8 per cent loss in covid19 lockdown

Prestige Holdings Ltd has recorded an eight per cent decrease in sales for the first six months of 2021.

In its unaudited consolidated financial statement for the period ending May 31, chairman Christian Mouttet said the loss was greater than 2020 for the same period.

“For the first six months of 2021, group sales decreased by eight per cent to $393 million from $428 million in the prior year, and this resulted in a loss before tax of $19.8 million compared to a loss of $7.1 million for the same period in 2020.

“These results include a negative net adjustment of $3.3 million in the quarter ($4.3 million in 2020) for the IFRS 16 Standard, which we first adopted in 2020.”

The consolidated financial statements include the activities of Prestige Holdings Ltd, the parent company – KFC, Pizza Hut, Subway and Starbucks, and Weekenders Trinidad Ltd — TGI Fridays Trinidad, and Prestige Restaurants Jamaica Ltd – TGI Fridays Jamaica.

He also noted that decline also catered for a provision of $2.2 million for inventory that has expired or is expected to expire before the restaurants reopen.

Prestige Holding' cash flow from operations was $2.1 million and the company ended the half-year with $22 million in cash when compared to $59.7 million at the start of 2021.

Mouttet said the decline was mainly due to the covid19 restrictions and expects the rest of the year to be difficult for operations.

Like 2020, government restrictions to curtail the spread of covid19 affected the restaurant industry heavily, as it was ordered to limit operating hours, limit dine-in and bar sales.

“We have entered the third quarter with the restrictions on all restaurant operations still in place and, while we are hopeful that this will end soon, there is no clear visibility as to when restrictions will be partially or completely removed.”

To mitigate further against further loss, the company has engaged several initiatives to reduce costs and improve efficiencies which inlcude halting all non-essential capital expenditure such as new restaurant construction, restaurant re-imaging and the development of a new distribution centre.

During the recent round of restrictions Prestige Holdings opened its Starbucks outlet in Gulf View San Fernando, but has saidt its new projects –KFC at Xtra Plaza in Sangre Grande and Starbucks at Shoppes of Trincity – will now be opened when the restrictions are lifted.

“Even though current conditions remain difficult, we remain confident in the performance and strength of our business in the medium to long term. Our brands and operations remain strong, and our conservative balance sheet has given us the flexibility to fund our operations through this difficult period.”

Mouttet also said the company continued to assist all its employees and others unable to work through the company and the Victor and Sally Mouttet Foundation by providing cash payments and food hampers.

He said the support will continue to the extent that resources allow, but those resources were not limitless.