MANAMA: Bahrain Duty Free Shop Complex achieved a net profit of BD108,337 during the fourth quarter (Q4) of 2020 compared with BD1,182,108 in the previous year’s corresponding quarter representing a decrease of 90.8 per cent.
The profit was impacted by a decrease of 88pc in operating profit which were BD204,260 compared with BD1,703,454 in 2019 due to dramatic decline in sales.
Earnings per share were 0.76 fils compared with 8.31 fils in the corresponding quarter of 2019.
Total comprehensive loss was BD1,495,663 compared with income of BD1,555,544 in the same period of 2019, a decrease of 196.2pc.
Revenues achieved during Q4-2020 were BD3,335,458 compared with BD9,873,219 in Q4-2019 representing a decrease of 66.2pc.
Investment loss in the quarter was BD201,470 due to impairment provisions taken, while the investment declined with an impact on the previous figure thereby giving a decrease of 61.3pc quarter-on-quarter.
Operating profit declined by 88pc from BD204,260 in Q4-2019 to BD1,703,454 in Q4-2020, while investment loss recorded a figure of BD201,470 compared with loss of BD520,876 in the previous year, a reduction of 61.3pc.
For the full year 2020, the company achieved net profit of BD2,017,337 compared with BD7,498,653 in the previous year, representing a decrease of 73.1pc.
Basic earnings per share were 14.18 fils for 2020 as compared with 52.71 fils in 2019.
Total comprehensive loss for 2020 was BD914,664 compared with income of BD8,909,139 last year, a decrease of 110.3pc.
Revenues of BD15,532,458 were achieved during 2020 compared with BD37,605,146 in the previous year, representing a decrease of 58.7pc.
Operating profit declined by 89.3pc from BD6,416,039 in 2019 to BD689,260 in 2020, while investment income was BD859,530 compared with BD1,082,464 in the previous year, a reduction of 20.6pc.
The decline in investment income was due mainly to impairment provisions taken in the investment portfolio and reduced dividend income.
Total equity for the year stands at BD47,485,966 compared with BD52,918,181 in 2019, down by 10.3pc while total assets are BD50,778,861 compared with BD61,987,257 in the previous year, a decrease of 18.1pc.
Based on the results, the board of directors have recommended a full year cash dividend of 25fils per share.
Chairman Farouk Almoayyed said that the outbreak of the Covid-19 pandemic in March 2020 impacted heavily on the travel sector in terms of air traffic and therefore fewer passengers ultimately affecting sales.
He added that efforts from the executive management to explore and diversify sales plans as well as cost-cutting measures helped the company remain profitable in 2020 although down on the previous year.
Abdulla Buhindi, the managing director, said the positive result in a very difficult trading year despite the sharp declines in the year was acceptable.
He further explained that the joint venture partnership between Bahrain Duty Free Shop Complex and Gulf Air Holding Group Company under the name of Bahrain Duty Free Company at the new airport paves the way for great duty free services and the best shopping experience for passengers.
“Our new shops have more than 30 international brands listed under the portfolios of perfumes, cosmetics, fashion and jewellery in addition to luxury watches, which combined will lead Bahrain Duty Free in achieving growth and profitability in the years ahead,” he added.
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