Revenue for 2022 increased to $19,557,905 from $17,103,317 in 2021, reflecting revenue increases in our retail, services and bulk segments. These increases were partially offset by a decrease in revenue generated by our manufacturing segment. Gross profit for 2022 was $7,145,764 (37% of total revenue) as compared to $6,126,510 (36% of total revenue) for 2021. For further discussion of revenue and gross profit see the “Results by Segment” discussion and analysis that follows.
General and administrative (“G&A”) expenses on a consolidated basis remained relatively consistent at $4,866,117 for 2022 as compared to $4,764,486 for 2021.
Other income, net, remained consistent at $319,727 for 2022 as compared to $314,608 for 2021.
The COVID-19 pandemic had a material adverse impact on our consolidated results of operations for the three months ended March 31, 2022 and we believe the COVID-19 pandemic will continue to adversely impact our results of operations in future periods. See further discussion herein and at “LIQUIDITY AND CAPITAL RESOURCES – Material Commitments, Expenditures and Contingencies – COVID-19.”
Results by Segment
Retail Segment:
The retail segment incurred a loss from operations of ($190,946) for 2022 as compared to a loss from operations of ($617,699) for 2021.
Revenue generated by our retail water operations increased to $6,313,200 in 2022 from $5,711,305 in 2021 due to an 8% increase in the volume of water sold. The sales volumes for both 2022 and 2021 are significantly below the historical volumes for the retail segment prior to 2020 due to the cessation of tourism on Grand Cayman resulting from border restrictions that lasted from March 2020 through November 2021 in response to the COVID-19 pandemic. The increase in the volume of water sold in 2021 as compared to 2020 reflects the lifting in November 2021 of travel restrictions to the Cayman Islands for vaccinated individuals, which resulted in the resumption of tourism to the Cayman Islands. However, we believe it will be an extended period of time before tourism to the Cayman Islands approaches pre-pandemic levels.
Retail segment gross profit increased to $3,259,460 (52% of retail revenue) for 2022 from $3,003,311 (53% of retail revenue) for 2021 due to the revenue increase.
Consistent with prior periods, we record all non-direct G&A expenses in our retail segment and do not allocate any of these non-direct costs to our other three business segments. Retail G&A expenses remained relatively consistent at $3,450,406 for 2022 as compared to $3,371,010 for 2021.
Bulk Segment:
The bulk segment contributed $2,353,222 and $1,714,814 to our income from operations for 2022 and 2021, respectively.
Bulk segment revenue was $7,350,644 and $6,245,970 for 2022 and 2021, respectively. The increase in bulk segment revenue is attributable to an increase in energy costs for CW-Bahamas, which increased the energy pass-through component of CW-Bahamas’ rates and, to a lesser extent, an increase of 6% in the volume of water sold by CW-Bahamas.
Gross profit for our bulk segment was $2,663,525 (36% of bulk revenue) and $2,090,817 (33% of bulk revenue) for 2022 and 2021, respectively. Gross profit in dollars and as a percentage of revenue increased in 2022 as compared to 2021 principally due to the revenue increase.
Bulk segment G&A expenses remained relatively consistent at $310,303 for 2022 as compared to $377,503 for 2021.
Services Segment:
The services segment income from operations was $327,124 and $96,465 for 2022 and 2021, respectively.