Prestige loses $28.3m in 2021 – Trinidad & Tobago
PRESTIGE Holdings Ltd in Trinidad & Tobago yesterday declared an after-tax loss of $28.3 million for its 2021 financial year, deepening the $17.7 million loss the franchise holder of KFC, Starbucks, TGI Friday and others reported in 2020.
The loss included a non-cash accounting adjustment for IFRS 16 of $6.1 million before tax. IFRS 16 provides guidance on accounting for leases.
The company, which is listed on the Trinidad and Tobago Stock Exchange, also experienced a 21 per cent decline in its revenue for the 12 months to November 30, 2021. The Prestige Holdings sales declined to $712.1 million for 2021, compared with $896.9 million in 2020.
In the report accompanying the company’s financials, Prestige Holdings chairman, Christian Mouttet, said the Covid-19 pandemic had a significant impact on the restaurant industry and business, and by extension the operating results of Prestige Holdings for a second year.
“Throughout all of 2021, the restaurant industry was severely hindered by various Government-mandated operating restrictions, which included limitations on in-house fining and opening hours, the complete closure of all restaurants for 80 days and safe zone operating requirements that are currently in place,” said Mouttet.
The Prestige Holdings chairman said while these restrictions negatively impacted the company’s operations and earnings, “our focus throughout the year, as it was in 2020, was to protect the health and well-being of our employees and customers, minimise the financial impact these severe disruptions would have on our business and identify opportunities and implement changes that would benefit our business in the long term.”
Mouttet said he is pleased with the efforts and progress the management made in each of these areas.
He noted that during the 12 months ending November 30, 2021, the company generated $51 million in operating cash flow and ended the year with $55 million in cash.
Mouttet noted that rising commodity, transport and energy costs globally have impacted all industries and in particular the food industry.
On the company’s future, the Prestige Holdings chairman said the unpredictability of the Covid-19 pandemic and its impact on the restaurant industry has made it difficult, if not unwise, to make forward-looking statements with any level of accuracy.
Prestige loses $28.3m in 2021 Trinidad & Tobago Express Newspapers