Margaritaville Grand Turk has credited an improvement in its second-quarter 2020 results to an increase in the arrival of cruise ship passengers up to November 30, 2019.
“Revenue for the quarter was US$1.83 million. This was earned from the 256,299 passengers that cruised into the port during the period, realising a spend-per-passenger of US$7.13,” directors Ian Dear and John Byles wrote in a statement.
“This compared favourably to revenue of US$1.74 million earned from 246, 467 passengers in the [same] period in the prior year, at a spend rate of US$7.06 per passenger,” the statement continued.
This resulted in gross profit for the quarter moving up by six per cent when compared to the same period in 2018/19. Gross profit as of November 30, 2019, was US$1.36 million.
In terms of expenses, the company’s payout for promotional activities contracted by 10.6 per cent. It also accounted for 14 per cent less depreciation than that recorded in second-quarter 2018/19.
As a result, Margaritaville’s net profits increased from US$106,167 last year to US$128,010. This represented an improvement of 20 per cent.
For the six-month period, revenues rose from US$3.56 million in 2018 to US$3.86 million. The upward movement was consistent with a year-on-year increase in cruise ship passenger arrivals for the June and November period.
The company, therefore, noted that for the six-month period cruise ship passengers climbed from 509,059 to 538,339. Visitors also increased spending from an average of US$6.99 to US$7.17.
In the meantime, a 25 per cent reduction in the cost of sales for the six months ending November 30, 2019, boosted Margaritaville’s gross profit margin for the period.
According to Dear and Byles, “The company improved on scheduling and logistics planning so there were reduced requirements to source higher-priced supplies from local purveyors.”
For the six months ending November 30, 2019, Margaritaville recorded a net profit of US$445,312. This was 12 per cent more than US$397,319 earned in 2018.
The company reported a six per cent increase in net assets year-on-year. However, it increased cash and cash equivalents by 88 per cent to US$91,603 on November 30, 2019.
Margaritaville Turks operates seven attractions in Jamaica, Grand Turk, and Grand Cayman, including waterparks, nightclubs, beaches, and bars.