BICO Limited, a Barbados ice cream manufacturer and owner of the country’s largest cold storage facility, is reporting increased profitability.
Longstanding executive chairman of the company, Edwin Thirlwell said that with the economy expected to become stronger in the future, the prospects for an improved performance are positive.
BICO shared this in its recently-published executive summary for the first months of its financial year, a period which concluded on March 31.
Thirlwell said the company earned an increased profit, and there was also growth in revenue and operating.
“For the six month period ended March 31, 2023 the company recorded net income of approximately $500 000 compared to $400 000 for the same period in 2022,” the executive chairman shared.
“Whilst there was a slight decline of 1.6 per cent in overall gross revenue, lower operating expenses and a strong emphasis on cost recovery attributed to the significant turnaround in profitability for the first half of the year.”
Thilrwell added: “As a result, operating income more than doubled from approximately $310 000 in 2022 to $766 000 in 2023, an increase of $456 000 or 147 per cent.
“Total revenue growth was slightly constrained by a lacklustre performance of the franchise mobile fleet, however, growth in food services, cold storage and ice cream generally remains strong and is projected to continue to grow over the next two quarters,” he said.
The business executive said that “with expectations of a stronger local economy over the coming months, the company is cautiously optimistic of positive results by the financial year end”.
BICO’s recent improved financial performance follows what officials described as a “roller coaster” 2022 financial year.
Thirlwell said that “revenues surpassed pre-pandemic levels but profit objectives were derailed by significantly increased cost of ingredients, high shipping costs and excessive increases in energy charges”.
“Total revenues increased from $13 million in 2021 to $15.2 million in 2022, an increase of 17.1 per cent. The highest annual increase since 2019 [was] the result of a resurgence for key segments of the business, including ice cream which remained strong despite increased competition,” he stated. (SC)