Bahrain Duty Free announces 2015 results and refurb plans

The duty-free company reported operating profit of $13.7m, a growth of 14.3% over last year. Investment income declined 9.7% to $8.9m from the prior year due to an exceptional gain on the disposal of an investment property in 2014, the company stated.

Net profits recorded were $23.7m producing a growth of 4.4% compared to 2014. Basic earnings per share rose to 20 US cents per share compared with 19 US cents in 2014.

At December year end, total shareholder’s equity stood at $128m, an increase of 7.8% compared to $118.7m in 2014, while total assets stood at $144.7m reflecting the ever increasing performance and strength of the company’s financial position.

In the final quarter of 2015, sales were $19.6m up 0.5% on 2014 while operating profits fell 7.6% to $2.6m in the month. Investment income reduced by 61.4% to $1.6m. The reduction in operating and investment income relates to gains on disposal of fixed assets and investment properties in 2014. As a result, net income in Q4 was $4.8m down 35.3% on same quarter last year.

BDFSC Farouk Al Moayyed chairman, said 2015 had produced the company’s highest ever net profits which were testament to the company’s operational and investment strategies. He added the company has made important strategic progress to ensure continued success for the company.

Managing director Abdulla Buhindi said passenger volumes increased by 5.9% compared to 2014 and along with several marketing initiatives contributed to the increase in sales. He added the company had approved a capital budget for 2016 aimed at totally renovating and upgrading all of the company’s shops in the Departures area in the airport bringing in new brands and a wider choice of quality goods for the passenger. This investment will position the business on a stronger foundation for sustainable growth and profitability in the years ahead.