Bahrain Duty Free total revenue grew by 2.7%, amounting to BD27.5million compared to BD26.8million in 2011.
Gross profit increased by 6pc in value and the gross profit margin moved up by a further 3.2per cent. Operating cost reduced by 6.4pc and operating profit as a result, increased by 22.5 per cent.
Investment income of BD2.2million was recorded giving an increase of 8per cent on prior year. Impairment on investments reduced by 53 per cent amounting to BD400000 compared to 2011.
The investment portfolio at the end of last year had a value of BD18.3million, which grew by 36.6 per cent over last year driven mainly by new investments.
Return on average equity for the year stood at 17.4per cent, an increase of 13.7per cent over 2011. Earnings per share were 65.4 fils, a growth of 18.3 per cent year on year.
The shareholders approved the recommended cash dividend of 50 fils per share, of which 20 fils was distributed in 2012.
Addressing the AGM the Company chairman Farouk Yousuf Almoayyed said that the death head skull symbol that now has to appear on all cigarette packets sold in the Kingdom could cost Bahrain Duty Free (BDF) 20 per cent of its profit this year.
“(BDF) is facing a challenging year as it comes to terms with an embargo by international tobacco companies,” he said.
“Cigarette sales at BDF have a high margin and this ban will hit our profitability this year,” he said. “We will also suffer from the closure of Bahrain Air flights and more importantly the reduction in services by Gulf Air which is the airports major carrier. BDF reported a net profit of BD6.4 million ($16.97m) for last year, representing an increase of 17.4 per cent over 2011.