Bahrain Duty Free Shop Complex (BDFSC) has reported a +5.3% net profit increase to $19.8m for the year ended 31 December 2018, compared to $18.8m the previous year.

The company also achieved operating profit of $16.2m compared to $14.3m during the year before. This represents an increase of +13.1%. Total operating expenses rose by 13.6% to $35.7m.

Revenue rose by 13.8% to $96.6m compared to $84.8m the year before. Total Investment income fell by 19.4% to $3.6m from $4.5m during the previous corresponding period the year before.

POSITIVE YEAR-END

BDFSC ended the year positively, achieving Q4 revenue of $24.7m compared to $22.6m in Q4 2017, an increase of +9.3%. Operating profits amounted to $4m compared to $3.3m the year before, an increase of 21.7%. This was driven by strong sales growth in the quarter.

Net profits were $2m compared to $3.3m in the previous year’s corresponding quarter, representing a decrease of 36.7%.

Farouk Al Moayyed (left) Chairman, Bahrain Duty Free Shop Complex says excellent results were achieved in 2018, with double-digit growth in revenues and operating profits. He added that the company has made important strategic progress to ensure continued success in the future.

Abdulla Buhindi, Managing Director, BDFSC indicated that sales growth had surpassed budget and expectations of the previous year. He also said BDFC’s ‘excellent growth’ in sales and operating profits were a testament to the company’s decision in 2016 to make a significant capital investment into the renovation of the shops.

Many new brands were introduced in the perfume and cosmetics area as well as a new premium watch boutique. These contributed to the overall ‎performance of the shop, according to BDFSC.

Buhindi also states the company remains focused on delivering ‘first class’ customer service and a ‘unique’ shopping experience for customers.

Referring to the Bahrain International Airport Development programme, which includes the expansion of the duty free zone, Buhindi indicates  the business model will be operated by Bahrain Duty Free Company, a new company established in January 2018 as a joint venture between BDFSC and Gulf Air Holding Company. The project is expected to be completed in the fourth quarter of 2019.