Bahrain Duty Free Shop is expecting better results in the current year on the back of a strong upswing in the GCC tourism sector, fuelled by a revival in regional travel, strong economic growth, and government support.

This was revealed by the company’s chairman Farouk Almoayyed on the sidelines of the company’s annual general meeting at Downtown Rotana yesterday.

“The last few years have been difficult and we experienced challenges posed by adverse market conditions that impacted our property portfolio. This resulted in the company taking an impairment provision of BD279,000 in 2023,” he explained.

“However, we are optimistic that the performance of the holding company’s assets will be better this year as major economic indicators have improved and there is more activity.”

It may be recalled that Bahrain Duty Free Shop is now operating as a holding company transforming from retail operations earlier.

Bahrain Duty Free Company (BDFC) is the new joint venture between Bahrain Duty Free Shop and Gulf Air Group Holding (GFG).

BDFC commenced operations in January 2021 as the operator of shops at the departures and arrivals areas within Bahrain International Airport and also operates a shop at Khalifa Bin Salman Port in Hidd.

The chairman also said that the company continues to explore joint venture opportunities to manage duty-free shops in airports in Saudi Arabia.

The meeting saw shareholders approve cash dividend of 30 per cent, equivalent to 30 fils per share, amounting to a total of BD4,268,158, which will be distributed to shareholders by April 4, 2024.

Transfer of BD18,942 to retained earnings was also approved.

For the full year ended December 31, 2023, the company achieved a net profit of BD4,286,890 compared to BD3,688,930 in the previous year representing an increase of 16.2pc.

This resulted in an increase in the basic and diluted earnings per share figure which rose to 30 fils per share, a growth on the 2022 figure of 15.4pc.

The company’s share of profits from the joint venture was BD3.5m, up by 31.5pc compared to prior year.

Income from investment securities was BD1.4m representing a decline of 13.2pc. This reduction is due to a one-off dividend received in 2022 of BD776,000 from an unquoted equity investment.

Other income of BD165,000 rose by BD87,000 mainly due to additional bank interest earned on higher deposit rates in 2023.

A shareholder inquired about Bahrain Duty Free Shop’s expansion strategy, specifically regarding neighbouring airports and a potential duty-free shop at the King Fahd Causeway.

Vice-chairman Abdullah Buhindi responded that the company had actively pursued this opportunity. They presented a comprehensive proposal and feasibility study to operate duty-free shops within the causeway area. Unfortunately, the King Fahd Causeway Authority opted to award the contract to another operator.

Mr Buhindi emphasised that Bahrain Duty Free Shop remains committed to exploring suitable investment opportunities that align with their business goals.

 

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