Bahrain Duty Free posts BD1.7 million net profit

Bahrain Duty Free Shop Complex yesterday announced at a meeting of its board of directors, financial results for the nine months ended September 30, 2021.

Chairman Farouk Almoayyed said the company had achieved a net profit of BD519,421 during the third quarter of 2021 compared to loss of BD281,596 for the same quarter of the previous year representing an increase of 284.4 per cent.

Earnings per share during the quarter were 3.65 fils compared to (-) 1.98 fils in the same quarter of last year.

The increase in net profit in the quarter is due mainly to an increase in investment income.

Total comprehensive income for the quarter increased to BD1,238,421 compared to BD569,000 in the same quarter of last year representing an increase of 117.6pc.

Revenues in the third quarter were nil compared to BD2,092,359, a decrease of 100pc and this is due to duty free business being transferred to the joint venture.

For the nine months ended September 30, 2021, the company achieved a net profit of BD1,686,001 compared to BD1,908,595 for the same period in the previous year, representing a decrease of 11.6pc.

Earnings per share as of end-September 2021 were 11.85 fils compared to 13.42 fils last year.

Total comprehensive income grew to BD3,154,735 compared to BD581,578 in the previous year representing an increase of 442.4pc.

Revenues were BD805,686, a decline of 93.3pc compared to BD12,197,359 last year.

The company achieved an operating profit of BD182,062 for the nine months, which when compared to BD485,359 last year is a decrease of 62.5pc.

This is due to the duty free business being transferred to the joint venture.

The company’s managing director Abdulla Buhindi said profits from investments were BD1,508,170 for the nine months compared to BD1,059,965 in the same period last year, representing an increase of 42.3pc.

This is mainly due to an increase in cash profits received during the period.

Total shareholders’ equity for the period ended September 30, 2021 was BD47,078,028 compared to BD47,485,677 for the same period last year, down by 0.8pc.

Total assets as of end-September 30, 2021 were BD47,152,098 compared to BD50,778,294 last year, a decrease of 7.1pc.

Mr Buhindi said that in terms of sales, there were no sales in the third quarter, as the company now manages an investment portfolio for the joint venture in Bahrain Duty Free Company, which is a registered Bahraini company, 55pc owned by the company and 45pc owned by Gulf Air Group Holding.

It manages the duty free concession business in the new Bahrain International Airport which commenced operation at the start of this year.

Mr Buhindi added the gradual reopening of air traffic in many countries is expected to reflect in rising appetite for the travel sector, leading to duty-free sales returning to pre-Covid-19 levels.

Mr Almoayyed stated that the company achieved good financial results, in light of the continuing challenges of Covid-19 and the general impact on the travel sector in terms of air traffic, lack of passengers and retail sector sales.

“We are now in the stage of a gradual recovery and the results show progress compared to the same period of last year, which will lead to the expected strong recovery and back to normality after the pandemic.”

Source: https://www.gdnonline.com/Details/992838/Bahrain-Duty-Free-posts-BD17-million-net-profit