Trafco declares BD 1.35m net profit for 9 months of 2017
Manama : Trafco Group’s Board of Directors at its meeting yesterday discussed the financials for the 3rd quarter of 2017 that was reviewed by external Auditors Earnest & Young.
Ebrahim Zainal, chairman of the Board, declared a net profit for the 9 months of 2017 to stand at BD 1.35 million slightly over the BD 1.33mn of last year for the same period - despite a decline by 3% in total sales from BD 31mn to BD 30mn this year.
The general price retreat in major commodities and a revision in policy of imports in certain branches to boost profitability were major reasons for the retreat.
In the 3rd quarter of this financial year, the Group made a net profit of about BD 216K Compared to BD 342K for last year same period - a 37 per cent decline. Drop in return on investment portfolio and losses in a sister company were the major reasons. Total sales in the 3rd quarter stood at BD 9.9mn lower by only 2pc from last year’s same period sales of BD 10.1mn.
The Group CEO S. Sridhar stated that the decline in total sales of parent company during the period was partially due to general international price decline in main food items that the Group deals in like frozen
chicken.
On the other hand, a change in policy of importing fresh fruits & vegetables in the Group’s branch at central market resulted in volume decline and this policy was adopted to concentrate more on items with better margin. As a whole, the total decline in sales value was nominal as some other subsidiaries did better which reflected positively on the consolidated figures.
Awal Dairy company, a subsidiary had a very good third quarter sales and this year it achieved the highest total sales in comparison with sales in the last 5 years. Thanks to its aggressive marketing, it managed to obtain private label contracts for several major international companies in the area and its products under third party brands will be noticed in many markets and outlets in the next few months, alongside its own brands that are well being marketed locally and in Kuwait through its wholly owned subsidiary.
With regard to Bahrain Livestock Co. (BLSC), a sister company of the Group, the losses have continued for the third quarter mainly because of a general change in the meat trade to chilled and frozen meat, and tough competition from new
operators.
Our wholly owned company Bahrain Water Bottling continued its growth in sales of bottled water and had a profitable 3rd quarter sales.
Trafco Logistics, another wholly owned subsidiary also had a very good year and with increased demand for storage and other logistics services, maintained its share of the market and built up on profitability.
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