Gulf Hotels Group swings to profit, declares 20% dividend

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Gulf Hotels Group yesterday announced financial results, reporting a swing to profit in its fourth quarter and full-year 2021, helped mainly by revenues due to easing of COVID-19 restrictions.

“The increase in the net profit for the fourth quarter in comparison to the same period last year resulted mainly from increases in revenue due to the easing of restrictions introduced to combat the spread of Covid-19 that have had an impact on the hospitality industry in general and have allowed the normal operation of the Group’s hotels, restaurants, catering and ancillary services,” the group said in a statement.

Additionally, the Group said it had impaired BD 2.749 million from its property portfolio in Bahrain and Dubai in the fourth quarter last year vs 1.732 reversal in the year 2021.

Doubtful debts provision decreased by BD 202K. The increase in net operating profit is also impacted by the increase in Profit from Associates by BD 146K. Gulf Hotels Group also announced a 20% (BD 4,519,897) dividend for the year ended 31st Dec 2021.

Q4 results

The fourth-quarter net profit was BD 3.194 m compared to a loss of BD 3.446 m in the fourth quarter of the previous year. Earnings per share was 14 fils compared to a loss of 15 fils in the fourth quarter of last year.

Total comprehensive profit of BD 3.188 m, compared to a loss of BD 2.940 m for the fourth quarter of the previous year. Gross Profit of BD 3.811 m, compared to BD 2.059 m for the same period in last year, with an increase of BD 1.752 m or 85.12%.

Revenue was BD 7.673 m, compared to BD 4.938 m for the same period last year, with an increase of BD 2.735 m or 55.38 %.

Full-year results

 Net profit of BD 3.396 m compared to a loss of BD 8.128 m in the same period of the previous year. Earnings per share was 15 fils compared to a loss of 36 fils in last year. Total comprehensive profit of BD 3.519 m, compared to a loss of BD 8.381 m for the same period in the previous year.

Gross Profit of BD 10.468 m, compared to BD 7.430 m for the same period in last year, with an increase of BD 3.038 m or 40.89%. Revenue of BD 22.918 m, compared to BD 19.735 m for the same period in last year, with an increase of BD 3.182 m or 16.13 %.

The increase in revenue of BD 3,182,463 or 16% against last year is attributed to the business pickup across the group’s units which, resulted in a net profit of BD 3,396,338 vs a loss of BD 8,127,985 in 2020, the following also contributed to the positive net operating profit achieved: Management fee has seen an increase of BD 121,884.

Increase in Profit from associates by BD 315,239. Interest income decreased by BD 56,455 property impairment reversal of BD 1,731,989 in 2021 vs impairment in last year of BD 5,064,680 and BD 37,135 for doubtful provision against BD 608,895 of last year.

Decrease in depreciation vs last year by BD 1,063,779. Decrease in Group dividend income by BD 130,733 vs 2020. Decrease in Government grant by BD 557,733.

The Chairman, Farouk Almoayyed said, “Despite the impact on the Company’s financial performance, the Group’s priority remains to support the government’s fight against Covid-19 and the health and safety of our customers and staff”.

He further reiterated that “During this year of recovery, the Company’s result has positively progressed, the tremendous efforts of the Board and the Group’s management in reducing costs have boosted the outcome of the increase in revenue, reflected at both EBIDTA and Net Profits”.

CEO Garfield Jones said, “Whilst the management’s focus in 2021 has been on maintaining a tight control on costs and guiding the business through the pandemic, we have also seen the opening of the new Bahrain Airport Hotel, an 84-unit property within the Bahrain International Airport.

Towards the end of the year, the focus shifted on returning our properties to pre-pandemic operations, with the reopening of outlets.”