Trafco Group profit surges 127%, announces 14% cash dividend

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Trafco Group reported a surge in its fourth-quarter 2021 profit, which the company said was mainly due to cost reduction and control in all areas in the group as well as all subsidiary companies. Trafco board also recommended a cash dividend of 14 % of the share capital (equivalent to 14 fils per share) amounting to a total dividend of BD 1,038,766 to the shareholders.

Q4 results

The fourth-quarter net profit attributable to the shareholders was Trafco was BD 161k compared to BD 71k achieved during the fourth quarter of 2020, with an increase of 127%.

The diluted earnings per share were 3 fils compared to 1 fils during the same period of the previous year.

The total comprehensive income attributable to the shareholders of Trafco was BD -213k compared to BD 803k of the previous year with a decrease of 126 %.

Ebrahim Zainal, Chairman of Trafco Group, stated that the fourth quarter of 2021 has demonstrated well with considerable profit even though there was an interruption in logistics, supply of goods and high cost of raw materials, total revenue improved with better gross profit management. The decrease in total comprehensive income was mainly due to a decrease in unquoted investment valuation based on changes in global valuation multiples, though the related investment performed better.

Full-year results

For the year ended 31st December 2021, the group achieved a net profit attributable to the shareholders of Trafco of BD 1.30m compared with BD 1.45m in the previous year, with a decrease of 10 %. The diluted earnings per share were 18 fils compared with 19 fils in the previous year.

 The total comprehensive income attributable to the shareholders of Trafco was BD 1.79m compared to BD 1.84m of the previous year, with a decrease of 2.5 %.

Azzam Moutragi, Group Chief Executive Officer stated that the group has achieved decent net profit even though overall revenue dropped as there was limitations and restrictions in foodservice and hotel sectors due to continued Covid-19 in various variants.

Further, we managed to achieve net profit with the implementation of cost reduction and control in all areas in the group as well as all our subsidiary companies.