BMMI Group reports record net profits of BD 9.2 million for 2010 with net profits increasing by 1.6 per cent
BMMI B.S.C (Formerly Bahrain Maritime & Mercantile International B.S.C) proudly announced today a successful financial and operational performance for the year ended 31 December 2010.
Total sales revenues were strong at BD 84.8 million in 2010, despite a slight decrease compared to BD 87.2 million in 2009. However, net profit of BD 9.2 million was the fourth highest in the Group’s history, while shareholders’ funds increased to BD 48 million, up 7 per cent over 2009, resulting in return-on-equity (RoE) of 19 per cent. A key financial highlight was an impressive increase in liquidity, with cash and short-term deposits increasing to BD 12.9 million from BD 12 million in 2009. Total assets also increased 5.9 per cent to BD 61 million.
Total operating profit rose to BD 8.9 million from BD 8.7 million, reflecting lower selling and distribution expenses, and increased margins by consumer brand principals and prime vendors. Total assets increased from BD 57.8 million in 2009 to BD 61.2 million in 2010, due to increases in Property, Plant and Equipment and Trade receivables. The strong financial performance resulted in dividend cover (multiples) of 1.6, while earnings per share rose from Bahraini fils 79 (restated) to Bahraini fils 80 compared to 2009.
The underlying net profit and revenue strength of core businesses must be highlighted, as the Group is strongly capitalised, highly liquid, unleveraged and conservative towards investments. Despite recessionary pressures from suppliers and customers, the Group has successfully increased Gross Profit margin to 26 per cent due to effective client negotiation and supply chain management. In line with a prudent investment approach and devaluation of some investments, provisions of BD 0.4 million were made against impairments losses on AFS securities, substantially lower than BD 1 million in 2009. However, the investment portfolio remains healthy and further improvement is expected in 2011 as markets continue to recover.
BMMI Group Chairman, Mr. Abdulla Buhindi, stated: “Despite an initial recovery sentiment in 2010, the market was still challenging. In light of these factors, the Group’s exceptional financial performance in 2010 defines it as one of the most successful years in the long history of BMMI. The Group’s new five-year strategy provides a clear picture of our future direction. More importantly, we continued to implement our role as a responsible corporate citizen. In a first for a commercial listed company in Bahrain, BMMI continued to work with the Alosra Charitable Foundation, which manages the Group funds set aside for philanthropic and community activities.”
According to Chief Executive Officer, Mr. Gordon Boyle, “2010 was a successful year – despite the continued challenging global economy, all business divisions, subsidiaries and joint-ventures expanded operations and contributed to the bottom line. Exciting developments include the strategic expansion of Alosra across Bahrain, continued successes with our subsidiaries across the MENA region, as well as key contracts. These developments will continue in 2011 and we plan introduce an Integrated Management System. This reflects our core strategy, whereby a commitment in human capital and systems mean that BMMI will continue to lead in its numerous industries of practice. The demand-driven and diversified nature of our businesses will continue to bring us to success. BMMI has a clear strategic and is well positioned to meet the challenges and opportunities of 2011.”