GHG posts Q3 profit, strong bounce-back in performance

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Helped by strong revenues and lower expenses, Gulf Hotels Group said it swung back to profit in the third quarter of 2021 from a loss in the year-ago quarter.

Chairman, Farouk Almoayyed, said the Group saw a strong bounce-back in performance since the easing of restrictions in early July and the application of the current traffic light system, where most of the 3rd quarter has been on the green level.

“The lower cost base achieved when downsizing operations during the height of Covid-19 has been maintained, resulting in significantly better profit conversion whereby several divisions out-performed the same month in pre-pandemic 2019,” he added.

Almoayyed also said the Group is seeing “a resurgence in occupancy, the restaurant business and the conference and meeting market.”

He, however, expressed concerns that the “impending increase of VAT from 5% to 10% may well impact on the recovery as disposable incomes are further squeezed.”

Gulf Hotels Group Chief Executive Officer, Garfield Jones, added, “Our hotel’s activities are starting to return to normal with a full promotional programme in the last quarter of 2021 and plans are well advanced to reopen the Gulf Hotel’s La Pergola Restaurant”.

Quarterly results

Q3 net profit was BD 833,821 compared to a loss of BD 1,682,744 m in the year-ago quarter, with an increase in the quarter turnover of BD 2.517 million.

Profit per share was 4 fils compared to a loss of 8 fils in the prior-year quarter.

Gulf Hotels Group attributed the increase mainly to a rise in revenue of BD 2.390 m, decreases in administration expenses, depreciation by BD 260,536 and interest expense by BD 89,680.

Quarterly revenue surged 64.13% to BD 6.117 m from BD 3.727 m in the same quarter a year ago.

Total comprehensive income was BD 905,701 compared to a loss of BD 1.174 m the same quarter a year ago, with an increase in the quarter turnover of BD 2.080 m.

Gross profit soared 146.93% to BD 2.852 m from BD 1.155 m in the year-earlier quarter.

Nine-month results

Nine-month net profit was BD 202,187 compared to a loss of BD 4.682 m in the prior-year period, with an increase in turnover of 4.884 m.

Profit per share was one fils compared to a loss of 21 fils in the nine months of the last year.

The increase in the net profit was mainly from the increase in revenue by BD 447,659, a reduction achieved by decreasing the operating costs by BD 837,966, administrative & staff cost by BD 111,270, depreciation by BD 788,807, interest expense by BD 214,399, doubtful debts by BD 369,657, and a zero property and equipment impairment against BD 2,315,810 previous year.

Revenue rose 3.03 % to BD 15.245 m from BD 14.798 m in the year-ago period.

Total comprehensive income was BD 331,230 compared to a loss of BD 5.442 m for the nine months of the previous year, with an increase in the quarter turnover profit of BD 5.773 m.

Gross profit zoomed 23.94% to BD 6.657 m from BD 5.371 m in the same period last year.

The total equity (excluding minority interests) for the year was BD 98.676 m compared to BD 100.622 m last year, with a decrease of 1.93 %. EBIDTA excluding impairment of BD 5.131 compared to BD 3.566 for the same period in last year, with an increase of BD 1.565 or 43.89 %.