MANAMA: Trafco Group has reported a net profit of BD68,000 for the fourth quarter of 2019 as against BD211,000 achieved during the fourth quarter of 2018, with a decrease of 68 per cent.
The decrease in the net profit was due to overall decrease in the selling price leading to gross profit margin drop and increased expenses.
The diluted earnings per share for the fourth quarter of the 2019 were one fils compared with three fils during the same period of previous year.
Total comprehensive income for the quarter was minus BD77,000 compared with BD272,000 in the previous year with a decrease of 128pc due to fair value change of unquoted investments.
The group’s profit from operations (including minority shares) was BD345,000 during the quarter compared with BD438,000 for the fourth quarter of previous year, with a decrease of 21pc.
For the year ended December 2019, the group achieved a net profit of BD1.37m compared with BD1.84m in the previous year, with a decrease of 26pc.
Trafco Group chairman Ebrahim Zainal said the decrease in net profit for the year was due to challenging economic circumstances in the local market resulting in the overall drop of profitability with the increased cost of raw materials and cost of fuel and energy leading to higher production cost for the parent and group companies.
Diluted earnings per share for the year were 18 fils compared with 24 fils in the previous year.
Total comprehensive income for 2019 was BD2.65m compared to BD2.06m in the previous year, with an increase of 29pc resulting from valuation of investment and profit on sale of securities.
The group’s profit from operations (including minority shares) for 2019 was BD1.82m compared to BD2.37m of previous year, with a decrease of 23pc.
Total shareholders’ equity (excluding minority interests) as of end-December 2019 was BD26.1m compared with BD25.6m in the previous year, with an increase of 2pc mainly supported by comprehensive income.
Total assets as of end-December 2019 reached BD45.4m compared with BD39.8m in the previous year with an increase of 14pc.
The board of directors has recommended a cash dividend of 15pc of capital, equivalent to 15 fils per share to the shareholders registered at the date of the AGM.
Group chief executive S Sridhar said a new asset in the balance sheet ‘right-of-use of asset’ is created as per the requirement of new IFRS requiring additional depreciation and finance charges on the lease liability which impacted the net profit.
As per the new IFRS requirement the group chose the option of accounting the profit on sale of investments under other comprehensive income as against the practice of taking the same to statement of income, which otherwise would have increased the earning per share.
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