BAHRAIN. Bahrain Duty Free Shop Complex’s (BDFS) reported gross revenues of US$84.8 million, a rise of +10.8% over 2016. Operating profits stood at US$14.3 million, increasing by +12.7% in the year.
Net profits declined by -14.9% year-on-year in 2017 to US$18.8 million. Investment incomes more than halved to US$4.51 million, recording a decline of -52% on the previous year’s US$9.4 million. This was due to a one-off dividend received in 2016.
In the fourth quarter, sales were up +16% to US$22.7 million while operating profits grew +29.9% to US$3.33 million. Investment income in Q4 declined -101.1% to a US$59,753 loss, resulting from the aforementioned dividend. As a result, net income in Q4 reached US$3.27 million, a -58.4% drop on Q4 2016.
Total shareholder’s equity stood at US$132.5 million at the end of 2017, a -1.6% decrease on 2016’s US$134.7 million result.
Bahrain Duty Free Chairman Farouk Al Moayyed said that 2017 had produced “excellent results” with double-digit growth in revenues and operating profits.
The company has made important progress to ensure its continued success, he added.
Despite challenging passenger numbers, sales growth surpassed budget and prior year expectations, according to Bahrain Duty Free Managing Director Abdulla Buhindi.
He said the company’s “excellent growth in sales and operating profits” were a testament to its investment in store renovations.
The retailer introduced several brands and initiatives in fragrances & cosmetics and its new Premium Watch boutique, which contributed to overall performance. “The company remains focused on delivering first-class customer service and unique shopping experience for all our customers,” added Buhindi.
Last month, the BDFS announced a joint venture with Gulf Air Group Holding to run core duty free at Bahrain International Airport’s (BIA) new terminal, set to open next year.
The joint venture, under the name of Bahrain Duty Free Company, will invest in around 3,300sq m of retail space in the new Passenger Terminal Building, which is being built as part of the US$1.1 billion Airport Modernisation Programme.
