Trafco Group reports Q4, FY19 financial results

TDT | Manama

Trafco Group (TRAFCO) reported a fourth quarter 2019 net profit of BD 68k against BD 211k in the same quarter a year ago, with a decrease of 68 per cent. The decrease was attributed to overall decrease in the selling price leading to Gross Profit margin drop and increased expenses. Earnings per share for the quarter was 1 fils compared to 3 fils in the year ago quarter. Total comprehensive income was BD -77k compared to BD 272k of previous year related to Trafco Group shareholders with a decrease of 128pc due to fair value change of unquoted investments. The group’s profit from operations (including minority shares) was BD 345k compared with BD 438k in the prior year quarter, with a decrease of 21pc.

Full-year results

Net profit related to Trafco shareholders was BD 1.37 million compared with BD 1.84m in the previous year, a decrease of 26pc. Trafco Group chairman Ebrahim Zainal stated that the decrease in the net profit 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 & energy leading to higher production cost for the parent and group companies. Earnings per share was 18 fils compared with 24 fils in the previous year. The total comprehensive income was BD 2.65m compared to BD 2.06m of previous year related to Trafco Group shareholders, with an increase of 29pc resulted in valuation of investment and profit on sale of securities. Trafco’s board recommended a cash dividend of 15pc of the share capital, equivalent to 15 fils per share to the shareholders registered at the date of the AGM. S.Sridhar, Group CEO has stated that 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 our Net Profit.