BMMI reports net profit of BD5.57m

 The BMMI Group has announced that consolidated net profit attributable to shareholders in the fourth quarter of 2021 stood at BD2 million, an increase of 78 per cent compared to BD1.2m for the same period in 2020 (BD3.2m in 2019).

The earnings per share for the quarter stood at 15 fils, a 78pc increase from 8.4 fils in 2020 (23 fils in 2019).

The group’s comprehensive income attributable to the shareholders in the fourth quarter increased by 118pc, from BD0.8m in 2020 to BD1.79m in 2021 (BD3.5m in 2019).

The increase in net profit of the fourth quarter in 2021 was attributed to the economic recovery that followed the re-opening of all border ports and the tourism industry, as well as the country’s vaccination drive and the return of a semi-normal lifestyle.

With the continued closure of the hospitality sector and travel restrictions for the majority of 2021, the pandemic resulted in severe downturn across most of the group’s businesses.

Demand for essential goods continued to rise while demand for non-essential goods and services plummeted.

The impact on the group’s bottom line for 2021 is estimated at BD3m (BD5.2m in 2020).

As significant uncertainty continues with respect to the long-term impact of the pandemic on economic and social well-being, the group strongly believes that survival continues to depend on the adaptability and resilience of both its operations and its people.

Due to these challenges, the net profit attributable to shareholders stood at BD5.57m in 2021, compared to BD4.03m in 2020 (BD9.2m in 2019), an increase of 38pc.

The group’s earnings per share stood at 39 fils in 2021 compared to 28 fils in 2020 (65 fils in 2019), an increase of 39pc.

Furthermore, the total comprehensive income attributable to the shareholders was BD2.01m in 2021 compared to BD2.82m in 2020, a decrease of 29pc (BD10.64m in 2019).

Additionally, the total equity attributable to the shareholders of the group at the end of the year stood at BD66.4m, compared to BD67.98m in 2020, a decrease of 2pc (BD69.6m in 2019).

Furthermore, the total assets for the year stood at BD111.3m in 2021, compared to BD114m in 2021, which is a decrease of 2pc (BD118m in 2019).

Based on these results, the board of directors has recommended a cash dividend of 30pc of share nominal value, equivalent to 30 fils per share, amounting to BD4,270,822, to the shareholders whose names are registered on the company’s register on the record date.

Backbone

The proposed annual cash dividend is subject to approval at the annual general meeting to be held on March 29 in Bahrain.

Commenting on the results, BMMI chairman Abdulla Buhindi said: “During 2021 and amidst the Covid-19 pandemic, the BMMI Group delivered good results despite the regional and international slowdown. I believe that our diversified business model has helped us face these unique challenges. Our retail and distribution capabilities, Alosra supermarket, and Nader Trading have proven to be the resilient backbone we can really be proud of. We are also proud that in the midst of the pandemic, BMMI has not forgotten its responsibility towards the community, and has continued to uphold existing and new initiatives at national, regional, and international levels.

“With that being said, the road to recovery in 2022 will be slow, especially with the emergence of the new Omicron variant, in addition to the apprehension and caution that is still prevalent globally, which poses further challenges to our business as the future remains unpredictable. Maintaining our focus on recovery in 2022, BMMI will revisit its strategy with an aim to secure steady growth, while keeping potential new ventures and markets on its radar. By reviewing our strategy and priorities, we aim to achieve the expected results through a healthy mix of long and short-term strategic goals, opportunities and investments whilst keeping our focus on diversification, constant risk monitoring and mitigation,” he added.

Source: https://www.gdnonline.com/Details/1034314