KLE Group makes ‘incredible turnaround’ to post $165 million in profit

KLE Group makes ‘incredible turnaround’ to post $165 million in profit

The KLE Group made $165.3 million net profit for its December 2016 financial year end, which marks an "incredible turnaround" for the group that only a year ago made a loss of $33.6 million.

Group CEO Gary Matalon attributes the turnaround to the continued restructuring efforts at the company.

Moreover, the restructuring efforts have also resulted in greater efficiency in the Tracks and Records Restaurant division.

Matalon said further that the operations of the company has been streamlined, which allowed management to further focus on franchising and the development of the Bessa Project that started its construction phase in the first quarter of 2017.

"The revival of KLE Group has allowed us to primarily focus on new business development, the recruitment of new franchisees and the Bessa Project. The success of these new projects coupled with the increased revenue streams will further bolster the profitability of the Group,"
said Matalon.

The group registered an operating profit of $179 million which compares favourably to the preceding year’s loss of $42 million.

Several factors have contributed to growth of the company including strategic planning, prudent financial management and there is a reduction in the financial impact caused from divesting Famous Night Club, said Matalon.

Total revenue for the 2016 period amounted to $196 million compared to $174 million in 2015, an increase of more than 12 per cent. Overall expenditure and liabilities have trended down.

The reduction in the cost of sales is being done by menu restructuring, improved supply chain and new pricing strategies have kept the cost of goods sold at an optimal rate despite other external economic factors.

Cash flows have also increased from the previous year’s negative balance of -1.3 million to 6.2 million in 2016. Matalon attributed this to restructured debt financing, the opening of the Ocho Rios franchise, increased shareholder confidence, and realized profitability.

KLE Group opened its first franchise of Tracks and Records in Ocho RIos last year, and will officially welcome its second franchise, which is scheduled to commence operations in third quarter of 2017 in Montego Bay.

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