TRAFCO GROUP reports Q4, full-year 2024 profits

TDT | Manama

Email: mail@newsofbahrain.com

For the fourth quarter of the year 2024, TRAFCO Group reported a net profit attributable to the shareholders of Trafco BD 2,932, as against BD 102k for the fourth quarter of 2023, with a decrease of 97%. This decrease is attributed to several factors, mainly because of a slight decline in total sales of the group of 1.43% in this period, but the major reflection on the decline was the drop of 1.06% in the Gross Margin on total sales compared to last year’s. This was mainly due to an increase in landed cost of imported materials, while sale prices in the local market, due to competition, did not pick up. Also, to comply with accounting standards and requirements, the provision for receivables was considered higher. Thus, earnings per share for the fourth quarter of 2024 were nil compared to 2 fils for the same period of the previous year.

On the other hand, to comply with Accounting standards of evaluating some shares in our portfolio relating to non-listed companies, and applying multiple valuation method as per international likewise companies as well as the general decline in prices of listed companies too, the company took extra provisions this quarter resulting in a sharp decline of total comprehensive income attributable to shareholders of Trafco for the fourth quarter 2024 is negative BD 1.58 million compared to BD 1.41 m of the previous year 2023, a decrease of 212%.

Full year results

For the year ended 31st December 2024, the Group achieved a net profit attributable to shareholders of Trafco of BD 1.83 m compared with BD 1.75 m in the previous year 2023 with an increase of 4.3%.

Earnings per share for the full year of 2024 was 25 fils per share compared to 24 fils in the previous year 2023.

The total comprehensive income attributable to the shareholders of Trafco for the year 2024 of BD 264k compared to BD 2.99 million in the previous year 2023, with a decrease of 91% mainly due to valuation methods applied for unquoted investments.

Cash dividend

Based on these results, the Board of Directors at its last Board meeting recommended a cash dividend of 18% (18 fils per share) for a total amount of BD 1,335,413 to the shareholders whose names appear on the Company’s register on the records date.

Commenting on the results, Mr. Ebrahim Zainal, Chairman of the Board, expressed Board’s pleasure for the Group achieving these results in spite of the tough competition, market fluctuations, uncertainty and interruption in the International Marine movement, and delays in receiving cargo due to conflicts and wars in the area. The Group maintained its market share, though, and in the Food industry through its subsidiaries succeeded in gaining a stronger presence with new products and packs. He added that financial results for this year are good and there is potential for companies within the group to grow in the years to come.

On the other hand, Mr. Azzam Moutragi, Group Chief Executive Officer, added that the Executive Management of the Group took steps during this year to re-organize and appointed new skilled operations Manager of some of the subsidiaries to face the new challenges of the market. The manufacturing subsidiaries have invested in new packing lines and new packages that should hit the market within the new year.