Prestige Holdings Ltd has recorded a profit of $35.5 million for the financial year of 2019. This is a 36% increase from $26.4 million in 2018.
In a release, Prestige Holdings Chairman Christian Mouttet said: “Our improved profitability in 2019 was due to increased sales, primarily from new restaurants, and improved operations in most of our brands.”
He continued: “While all brands experienced improved sales, our Subway, Starbucks and TGI Friday’s brands enjoyed the most significant improvement in profitability when compared to the prior year.”
During the year, Prestige noted that it completed a new development—Trincity Plaza in Trincity. Mouttet acknowledged that the performance of the company’s new restaurants at this location has exceeded its expectations.
Mouttet said that Prestige’s key areas of focus for 2019 was improved customer experience and greater operating efficiencies across all brands.
He explained: “Independent market research monitored by ourselves and our international franchisors during the period indicate that we have improved in many areas.”
The other area of improvement in 2019, according to Mouttet, was the successful introduction of new products in some brands and the introduction of value offering that resonated with customers.
The company chairman noted that Prestige’s long term borrowings increased from $63 million to $77 million due to the financing of Trincity Plaza, which currently houses three of the company’s brands. Mouttet expressed: “During the period, we opened 7seven new restaurants—two Starbucks at Trincity and Couva, two Pizza Huts at Trincity and two KFCs at Movie Towne, Port-of-Spain and Tumpuna Road.”
He continued: “During the year we also closed two Subway restaurants in Port-of-Spain, at Long Circular Mall and Hart Street, relocated the Subway in Valsayn and reimagined five KFCs at Morvant, Gulf View, Tunapuna, Westmoorings and Marabella. We ended the year with a total of 129 restaurants.”
In 2020, Mouttet acknowledged that Prestige will continue to face some of the challenges experienced in the previous year, the most significant being the ability to access sufficient foreign exchange to pay foreign suppliers on a timely basis.
According to Mouttet: “This situation not only has as significant cost impact on our company, but also is a threat to our supply chain.” Mouttet indicated that the company is seeking innovative ways to reduce its reliance on imports by working with local manufacturers and producers to improve local sourcing.
He noted that Prestige has already achieved some success in that area, with two significant products that were previously imported, now being sourced locally.
In the current financial year, Prestige will begin construction of a new Operations and Distribution Centre in Aranguez. Mouttet said: “This will be a significant investment for our company and will, for the first time, bring together all of our offices and warehousing, currently in three locations, into one integrated facility.”
He continued: “We expect that this will improve management effectiveness and operational efficiencies from inception. This facility is expected to be occupied in the first half of 2022.”