HIGHLIGHTS
PHL Q12025
- Earnings: Diluted Earnings Per Share increased 59.2% to $0.25 from $0.16
- Performance Drivers:
- Stable Revenues
- Improved Margins
- Outlook:
- New Restaurant Openings / Regional Expansion
- Rating: Maintained at OVERWEIGHT
AHL Q12025
- Earnings: Earnings Per Share grew 10.0% to $0.11 from $0.10
- Performance Drivers:
- Higher Revenue
- Lower Margins
- Outlook:
- Cost Management Initiatives
- New Product Offerings
- Rating: Maintained at MARKETWEIGHT
This week, we at Bourse review the financial results of Prestige Holdings Limited (PHL) for its three months ended February 28th, 2025 and Angostura Holdings Limited (AHL) for its three months ended March 31st, 2025. PHL delivered a solid performance, supported by stable revenues and effective cost management. AHL, while recording higher revenues and expanding its retail footprint, faced pressure on profitability margins. Can both companies continue to improve results in the upcoming months ahead? We discuss below.
Prestige Holdings Limited (PHL)
Prestige Holdings Limited (PHL) reported Diluted Earnings per Share (EPS) of $0.25 for the first quarter ended February 28th, 2025 (Q12025), advancing 59.3% from $0.16 recorded in Q12024.
Revenue increased marginally (+0.5%) from a previous $341.5M in Q12024 to $343.1M in Q12025. Cost of Sales increased 0.7%, while Gross Profit remained relatively stable at $115.9M. Other operating expenses increased 1.4% while administrative expenses dropped 21.3% year-on-year from $36.9M to $29.0M in Q12025. Other income declined 7.8% to $0.4M. Resultantly, PHL reported Operating Profit of $27.1M in contrast to $15.3M in Q12024. Finance Costs fell 7.3% to $4.3M. The Group recorded a Profit Before Tax (PBT) of $22.8M in Q12025, relative to $15.3M recorded in Q12024. Overall, PHL reported Profit Attributable to Owners of the Parent Company of $15.6M, comparative to $9.9M in the prior comparable period (+58.3%).
Flat Revenue Growth
PHL’s total revenue grew marginally from $341M to $343M in Q12025, continuing an upward trend since the Group’s most heavily COVID-affected period. Revenue growth was marginal at 0.5%, supported by a combination of sales from new and existing stores as well as remodeling initiatives at existing locations. During the first quarter, the Group closed one KFC restaurant at Valpark, Trinidad, bringing the total number of stores to 136.
Looking ahead, the restaurant management company plans to continue investing in the remodeling of its restaurants while placing greater emphasis on digital technology initiatives aimed at improving operational efficiency.
Margins Higher
For the fiscal year 2024, PHL’s profitability margins generally improved. Gross Profit Margin remained relatively stable at 33.8% in Q12025, reflecting ongoing efforts to manage input costs. Operating Profit Margin grew from 5.8% to 7.9% in Q12025, due to a notable drop in administrative expenses, which more than offset the modest increase in operating expenses. Profit Before Tax (PBT) margin, widened to 6.6%, compared to a prior 4.5%.
The Bourse View
PHL is currently priced at a market price of $10.95 and the stock trades at a price-to-earnings ratio of 9.5 times, below the trading sector’s average of 14.5 times.
The stock offers investors a trailing dividend yield of 4.8%, relatively in line with the sector average of 5.0%. PHL remains well positioned in the restaurant industry, both locally and regionally, backed by a diverse and resilient brand portfolio and opportunities for market expansion. On the basis of stable revenues, improved margins and attractive valuations, Bourse maintains an OVERWEIGHT rating on PHL.
Angostura Holdings Limited (AHL)
For the three-month period ended March 31st, 2025, Angostura Holdings Limited (AHL) reported Earnings per share (EPS) of $0.11, growing 10% compared to the prior comparable period.
Revenue advanced 17.4% to $220.6M from the previous $187.9M, bolstered by strong sales of the newly launched Correia’s Enhanced product line. Gross Profit rose 14.2% year-over-year, reaching $108.7M from $95.2M. In terms of operating expenses, selling and marketing costs jumped 24.9%, while administrative expenses declined by 10.4%. Other expenses were $0.2M versus an income of $1.1M in the prior period. AHL recognized an expected credit loss of $0.4M, contrasting with a $0.43M writeback in Q12024. Results from operating activities amounted to $29.6M, an increase of 16.0%, attributed to improved cost control and operational efficiency. Finance cost climbed 38.9% from $0.7M in Q12024 to $0.9M, while Finance income fell to $4.6M from a previous $5.0M. Profit Before Tax (PBT) advanced to $33.3M from a previous $29.8M, up 11.4%. Profit for the period closed at $22.7M, rose $2.1M or 10.2% versus the prior comparable period.
Higher Revenues
AHL’s revenue in Q12025 rebounded, marking a recovery after two consecutive periods of decline. Total Revenue increased by 17.4%, from $188M to $221M. The company noted that Local Revenue remained steady, supported by strong growth in the Rum and Bitters segment. International Revenue in the Rum segment surged by 308%, while the Bitters segment posted a 13% increase. By the end of the previous quarter (Q42024), AHL expanded its retail footprint with the opening of two new outlets at East Gates Mall in Trincity and M6 Plaza in Chaguanas, bringing the total number of retail stores across the country to six.
Margins Dip
Despite the growth in Revenue, AHL’s profitability margins dropped relative to historical levels in Q12025. Gross Profit margin edged down to 49.3% from 50.7%, as a result of higher input costs despite the growth in revenue from both local and international markets. Operating Profit margin also slipped slightly to 13.4%, compared to 13.6% in Q1 2024, due to higher selling and marketing expenses. Similarly, the Profit After Tax margin declined to 10.3%, down from 11.0% in the prior year’s corresponding quarter.
Going forward, future margin improvement will depend upon the Group’s ability to manage costs efficiently.
The Bourse View
At a current price of $14.80, AHL trades at a trailing P/E of 20.9 times, notably above the combined Manufacturing Sector average of 9.8 times. The stock offers investors a trailing dividend yield of 2.6%, below the sector average of 4.5%. While the Group has delivered solid revenue growth, cost and margin management will be influential in driving sustained earnings improvement. AHL’s outlook appears stable, supported by continued expansion through new retail locations and strong demand for its popular Rum and Bitters product lines. Accordingly, Bourse maintains a MARKETWEIGHT rating on AHL.
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