BAHRAIN. Bahrain Duty Free Shop Complex today announced a 5.3% rise in net profits for 2018 to US$19,813,172.
The retailer posted a 13.1% rise in operating profits to US$16,179,721.
Revenue rose 13.8% to US$96,557,995. Investment income fell 19.4% to US$3,633,451 due primarily to impairments taken in the year on property investments.
Basic earnings per share rose 6% to 14.1 US cents.
Strong finish to the year – operating profits rocket 21.7%
The retailer finished the year with a flourish as fourth-quarter revenues rose 9.3% to US$24,661,698. Operating profits surged 21.7% to US$4,047,469, driven by strong sales growth in the quarter.
Net profits were US$2,067,565, down 36.7% due to impairment charges of US$1,835,645 taken during the quarter on investments.
Chairman Farouk Al Moayyed said that 2018 had produced “excellent” results with double-digit growth in revenues and operating profits. He said that the company has made important strategic progress to ensure continued success.
Managing Director Abdulla Buhindi said that sales growth had surpassed budget and prior-year expectations. He said that the company’s excellent growth in sales and operating profits were a testament to the decision in 2016 to make a significant capital investment in renovating the shops at Bahrain International Airport.
Many new brands and initiatives were introduced in the perfumery & cosmetics area as well as a new premium watch boutique, helping to drive the strong results.
Buhindi said that the company remains focused on delivering first-class customer service and a unique shopping experience.
He highlighted the Bahrain International Airport development programme, which includes the expansion of the duty fee zone and reaffirmed that the business model will be operated by Bahrain Duty Free Company. As reported, that entity was established in January 2018 as a joint venture between Bahrain Duty Free Shop Complex and Gulf Air Holding Company*. The project is set for completion in the fourth quarter of 2019.
Buhindi concluded that the company had achieved “outstanding” financial results during the year, and thanked the executive management and company employees for their hard work and continuous efforts. He also expressed his confidence in the executive management continuing to achieve further growth.
*Note: Gulf Air Group Holding and Bahrain Duty Free Shop Complex signed a joint venture agreement in January 2018 governing the core duty free shopping offer at Bahrain International Airport’s new terminal.
The Passenger Terminal Building, which is being built as part of the US$1.1 billion Airport Modernisation Programme, is scheduled to open in late 2019, as mentioned.
Bahrain Duty Free is managed by Aer Rianta International-Middle East.
The agreement gave Bahrain Duty Free Shop Complex a 55% stake in the airport’s core duty free business, with Gulf Air Group Holding holding 45%.
