Trafco Group announces first quarter 2025 profit

TDT | Manama

Email: mail@newsofbahrain.com

Trafco Group has reported a net profit attributable to the shareholders of Trafco of BD 582k for the first quarter of 2025 as against BD 958k compared to the first quarter of 2024, with a decrease of 3 9%.

The diluted earnings per share for the first quarter of 2025 were 8 fils compared to 13 fils during the same period of the previous year.

The total comprehensive income attributable to the shareholders of Trafco Group for the first quarter of 2025 BD 620k compared to BD 1.06m during the same period of the previous year, with a decrease of 41%.

Mr. Ebrahim Zainal, Chairman of the Board of Directors, stated that the drop in profitability was due to several factors and reflects the challenging conditions in the food and consumer goods markets. The Group’s total sales volume declined by 13%, and a 2% reduction in the gross profit margin was the primary driver behind the decline in net profit.

According to the Executive Management, the prices of key commodities, particularly frozen chicken, dropped significantly at the beginning of the financial year. Due to extended voyage time and lower sales, the gross margin was considerably impacted. Additionally, finance cost and depreciation related to the new project of the subsidiary, Trafco Logistics, have affected the Group’s overall profitability.

Mr. Azzam Moutragi, Chief Executive Officer of the Group, noted that Trafco Group, including subsidiaries have maintained their market share despite the price volatility caused by the sharp drop in inventory replacement costs. He added that market conditions, commodity prices, and gross margins have started to normalize gradually, and improvement in performance is expected in the coming months.

The Group said it remains committed to maintaining its overall market position despite the ongoing challenges and intense competition.

The total shareholders’ equity (excluding minority interests) as of 31st March 2025 was BD 28.52m compared with BD 29.24m as end of last year with a decrease of 2.45 %.

The total assets as of 31st March 2025 reached BD 56.79m compared to BD 55.63m at the end of last year with an increase of 2.10%.