MANAMA: Bahrain Maritime & Mercantile International (BMMI Group) managed to weather the storm of the economic downturn with a strong performance last year.
Total sales revenue at BMMI reached a new record of BD87.2 million ($231.3m) compared to BD80.4m the previous year.
A net profit of BD9m ($23.9m) was the fourth highest in the group's history, while shareholders' funds increased to BD44.9m, up 10.7 per cent over 2008, resulting in an improved return-on-equity of 20pc.
The group's liquidity, with cash and short-term deposits almost doubled to over BD12m compared to BD6.7m in 2008.
Total comprehensive income for the year grew by over 70pc, reflecting net unrealised gains on available-for-sale (AFS) investments of BD700,000 compared to losses of BD1.8m in 2008.
In line with the group's prudent investment approach, and due to the devaluation of some investments, provisions of BD1m were made against impairments losses on AFS securities, which are substantially lower than the 2008 provisions of BD1.78m.
Total operating profit dropped last year to BD8.7m from BD9.6m the previous year, largely reflecting higher general and administrative expenses, which rose by 16.4pc, reduced margins by consumer brand principals and other suppliers, the setting-up of new Alosra Supermarket outlets, and higher staff costs.
Total assets decreased from BD62.4m in 2008 to BD57.8m last year, due to a reduction in inventories and trade receivables.
Earnings per share rose from 73 fils to 87 fils representing an increase of over 19pc.
"Given the difficult and demanding market conditions that characterised 2009, the group's exceptional financial performance must rank as one of the most successful during BMMI's long history," said group chairman Abdulla Buhindi.
"During the year, we continued to enhance the group's institutional capability, further strengthening our corporate governance and risk management framework.
"The planned introduction of an Enterprise Risk Management in 2010 will enable us to manage more effectively the group's increased risk exposure due to our growing international operations."
"Operationally, 2009 was both a successful and exciting year for BMMI," said chief executive officer Gordon Boyle.
"Despite the challenging global and regional business environment, all of the group's business divisions, subsidiaries and joint-ventures successfully continued to expand their operations, posting strong year-on-year revenue growth, all contributing to BMMI's bottom line.
"Exciting business developments include the launch of new BMMI-owned consumer brands, such as the Great Deli Company, and the expansion of Alosra Supermarket's footprint across Bahrain."
"We also continued to strengthen the group's organisational capability, with a particular focus on recruitment, human resources development, information technology, quality, and health and safety," he added.
"The demand-driven and diversified nature of our core business activities will continue to shield us from the worst of the current global financial crisis and its impact on the GCC.
"Strongly capitalised, highly liquid, un-leveraged, and with a clear strategic plan for the immediate future, the group is well positioned to meet the challenges of 2010 and to take advantage of new business opportunities," he added.
business@gdn.com.bh
