MANAMA: The BMMI Group has announced that consolidated net profit in the fourth quarter of 2020 stood at BD1.2 million, a decrease of 63 per cent compared to BD3.2m for the same period in 2019.
The earnings per share for the quarter stood at 8 fils, a 63pc decrease from 23 fils in 2019.
The group’s comprehensive income in the fourth quarter decreased by 76pc, from BD3.5m in 2019 to BD0.8m in 2020.
The decrease in net profit of the fourth quarter in 2020 was attributed to the impact of the Covid-19 pandemic on businesses across the world.
With the closure of the hospitality sector and travel restrictions, the pandemic resulted in severe downturn across most of the group’s businesses.
Demand for essential goods rose in the ensuing panic while demand for non-essential goods and services plummeted.
The impact on the group’s bottom line for the year 2020 is estimated at BD5.2m.
As significant uncertainty continues with respect to ease of lockdowns, social distancing norms and long-term impact of the pandemic on economic and social well-being, the group strongly believes that the survival depends on adaptability and resilience of both its operations and its people.
Due to these challenges, the net profit attributable to shareholders stood at BD4m in 2020, compared to BD9.2m in 2019, a decrease of 56pc.
The group’s earnings per share stood at 28 fils in 2020 compared to 65 fils in 2019, a decrease of 57pc.
Furthermore, the total comprehensive income attributable to the shareholders was BD2.8m in 2020 compared to BD10.6m in 2019, a decrease of 73pc.
Additionally, the total equity of the group at the end of the year stood at BD67.9m, compared to BD69.6m in 2019, a decrease of 2pc.
Furthermore, the total assets for the year stood at BD113.7m in 2020, compared to BD118.4m in 2019, which is a decrease of 4pc.
Based on these results, the board of directors has recommended a cash dividend of 25pc of share nominal value, equivalent to 0.025 fils per share, amounting to BD3,559,018, to the shareholders whose names are registered on the company’s register on the record date.
The proposed annual cash dividend is subject to approval at the annual general meeting to be held on March 30 in Bahrain.
Challenges
BMMI chairman Abdulla Buhindi said: “During 2020 and amidst the Covid-19 pandemic, the BMMI Group delivered good results despite the regional and international slowdown. I believe that our diversified business model has helped us face these unique challenges.
“Our retail and distribution capabilities, Alosra supermarket, and Nader Trading have proven to be the resilient backbone we can really be proud of. We are also proud that in the midst of the pandemic, BMMI has not forgotten its responsibility towards the community, and has continued to uphold existing and new initiatives at national, regional, and international levels.
“With that being said, the road to recovery in 2021 will be slow and painful, posing further challenges to our business as the future remains unpredictable.
“Maintaining our focus on recovery in 2021, BMMI will revisit its strategy with an aim to secure steady growth, while keeping potential new ventures and markets on its radar. By reviewing our strategy and priorities, we aim to achieve the expected results through a healthy mix of long and short-term strategic goals, opportunities and investments whilst keeping our focus on diversification, constant risk monitoring and mitigation.”
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