With the new terminals at the Bahrain International Airport (BIA) fully operational and the increase in tourists’ arrivals, the Bahrain Duty Free Shop Complex (BDFS) is upbeat about good business this year.
Farooq Almoayyed, Chairman of the Board of Directors BDFS said that he was optimistic about the positive business in 2022 and beyond.
Almoayyed, who chaired the annual general assembly of Bahrain Duty Free on Monday, told Bahrain News Agency (BNA) that the new airport and Gulf Air’s busy schedule will impact positively on the Duty-Free business this year.
The meeting was informed that the total net profits of BD 2.1 million were achieved in 2021, which represents an increase of 6% compared with last year.
Earnings per share are 15 fils compared with 14 fils for 2020. At December year end, total Assets were BD 47.6 million while total shareholder’s equity stood at BD 47.5 million.
The AGM approved BD 4.3million for distribution to the shareholders by 31 March 2022. The meeting, attended by the shareholders of the Duty-Free Shop, has approved the Company’s financial statements for the year end 31 December 2021.
“I am also pleased to report that Bahrain Duty Free achieved positive financial results earning a net income of BD2.1million. The year 2021 was a challenging year due to the continuing effects of the Covid-19 pandemic affecting the performance of the Company,” he said.
In January 2021, the new joint venture Bahrain Duty Free Company commenced duty free operations on the opening on the new Airport Terminal, thus ending Bahrain Duty Free Shop’s direct involvement in the duty-free business after thirty years. Bahrain Duty Free Shop is a shareholder in the new company with a 55% shareholding and accrues a share in the profits of the new joint venture.
For the full year 2021, the company reported gross revenues of BD806,000 representing a decrease of 94.8% on last year. Similarly, gross profits earned were BD 488,000 down on prior year by 91.2%.
Administration and selling expenses totaled BD848000 giving a positive variance of 85.5% as compared to last year. Within this, Royalty and Salaries represent the biggest savings on expenses. Other income recorded a figure of BD398,000, a decline of 60.0% on the prior year. Operating results for the year are BD38k vs BD689000, a decline of 94.5% year on year.
“The above changes in performance are due to the transfer of the “Duty Free Operations” to the new Joint Venture “Bahrain Duty Free Company” which commenced operations in 2021,” the statement of the company said.
Net Investment Income from all related activities for the year was BD2.1million an increase of BD1.2m or 144.8% compared to prior year.
“The main driver in this growth was income from our new joint venture Bahrain Duty Free Company. Other investment income reduced in the year by BD440,000. The decrease is mainly due to the decrease in dividends income by BD 102,000. This reduction is because of many companies reducing their dividend payments due the Covid-19 pandemic. The fund’s portfolio also saw reductions in income by BD 117,000 and unrealized losses of BD 135,000.
Share of profits of equity-accounted investees saw increased profits in the year due to the share of profit earned from the new joint venture Company Bahrain Duty Free Company. Profits earned were BD 1.6m compared to a figure of BD217k in 2020. Impairment provisions of BD358000 were taken during 2021 and down on last year’s figure of BD 614,000, a positive variance of BD256,000.
The investment portfolio now totals BD 45.1million a growth of BD 2.6million (5.4%) compared with BD 42.8million last year. The main movements in the portfolio for 2021 was income from associated companies BD1.5 million and Fair Value increases of BD1.4 million.
