Bahrain Maritime & Mercantile International (BMMI) reported a strong financial performance for the year ended 31 December 2008.

Total sales revenues reached a new record of BD 80.4 million, up 34 per cent over 2007, with operating profit growing by 11.6 per cent to BD 9.6 million compared to BD 8.6 million for the previous year. At the end of the year, shareholders’ equity was BD 40.5 million compared to BD 40.1 million at the end of 2007, while total assets increased by 10 per cent to stand at BD 62.4 million, reflecting the establishment of the Group’s new African subsidiary, Global Sourcing & Supply (GSS). Administrative expenses for the year were BD 6.7 million compared to BD 3.6 million for 2007, largely attributable to the consolidation of GSS subsidiaries in Mali, Gabon, Ghana and Sudan.

The unprecedented deterioration in global and regional market conditions during the second half of the year had an adverse impact on BMMI’s net profit for 2008, which decreased from BD 10.1 million in 2007 to BD 7.5 million. This was due to the Group’s conservative provisioning of BD 1.8 million for impairment losses on its available-for-sale securities; and BD 960,000 against unrealised losses in 2009 on its foreign currency option contracts that are used to manage some of its future transaction exposures. BMMI’s well-balanced investment portfolio had total funds under management of BD 12.8 million at the end of the year, compared with BD 13.5 million at the end of 2007.

Commenting on the year’s performance, BMMI Chairman, Mr. Abdulla Buhindi, said: “2008 was a milestone year for the Group. We successfully advanced our strategy of geographic expansion and diversification of revenues with the establishment of a new subsidiary in Africa – Global Sourcing & Supply – which provides remote site services for clients in Mali, Gabon, Ghana and Sudan. Significantly, our overseas operations now contribute over 40 per cent of the Group’s total revenues.

“During 2008, we also completed 125 years of uninterrupted operations in the Gulf region, which constitutes a unique Bahraini business success story. However, while proud of our past achievements, we remain firmly focused on the future. Strongly capitalised, unleveraged, and with healthy levels of liquidity, the Group is well positioned to meet the challenges of 2009 and to take advantage of new business opportunities,” Mr. Buhindi pointed out.

According to BMMI Chief Executive Officer, Mr. Gordon Boyle: “Operationally, 2008 was a record year for the Group, with all business lines posting strong growth and contributing to BMMI’s improved revenues and operating profits. Revenues from operations in Africa, including our new subsidiary, GSS, amounted to over BD 12 million, with profits exceeding BD 725,000. Since we began to expand the Group’s presence outside Bahrain in 2002, operating profits have more than doubled, which reinforces the validity of our strategy and business model.

“During 2008, we also continued to strengthen the Group’s organisational capability, with a particular focus on human resources, information technology, and risk management initiatives, designed to further improve our performance. The demand-driven nature and diversification of our core business activities – comprising food and beverage retailing, wholesaling and distribution; and contract services and supply – will continue to shield us from the worst of the current global financial crisis and its impact on the GCC,” he added.