ID :
368999
Wed, 05/27/2015 - 14:53
Auther :

Mumtalakat Holding announces 2014 consolidated financial results

Manama, May 27 (BNA): Bahrain Mumtalakat Holding Company ("Mumtalakat"), the investment arm of the Kingdom of Bahrain, today announced its full year financial results for 2014. The results reflect another solid financial and operational performance across the Mumtalakat group, constituting of 38 portfolio companies, ("Group"). Financial highlights Group revenues rose 11% to BD 1.2 billion (2013: BD 1.1 billion) Gross profit increased 65% to BD 181.1 million (2013: BD 109.4 million) Operating income of BD 113.1 million, up 60% (2013: BD 70.7 million) Net profit grew by 11% to BD 91.6 million (2013: BD 82.7 million); excluding impairment, net profit grew by 22% Total assets of BD 4.2 billion Portfolio highlights Gulf Air continues to reduce its operating losses as a result of its restructuring initiatives Alba continued to perform well, growing revenues and profits, and benefiting both from improved operating efficiencies and higher LME prices Mumtalakat’s two leading associate companies, Batelco and National Bank of Bahrain both grew net profits Commenting on the results, Mumtalakat’s Chief Executive Officer, Mr. Mahmood Hashim Al Kooheji, said: "2014 was another good year for Mumtalakat and we are very proud of what we have achieved. The strength of our financial results reflects the fact that we have been successful in implementing a disciplined and focused approach in the management of our portfolio. "Our portfolio management and investment strategy is conducted not only with a commercial mind-set, but we ensure that both we and our portfolio companies adhere to the highest standards of corporate governance and transparency. In doing so, we always seek to engage with management teams who share our vision and cultural values. In addition, Mumtalakat aims to diversify its portfolio across geographies through new investments and acquisitions. The benefits of our overall approach are clear from these results, which demonstrate the continued progression towards greater profitability. "The global and regional economies are undoubtedly experiencing some -challenging headwinds. However, we are confident that we have the right strategy, the right people and the right expertise in order to ensure that we are able to continue to grow the wealth of Bahrain in a sustainable way, for the long term." While group revenues for the year were up by 11% to BD 1.2 billion, direct costs rose by less than 5%, resulting in a 65% increase in gross profit to BD 181.1 million. The revenue growth was primarily due to higher sales reported both by Aluminium Bahrain ("Alba") and Gulf Air. A continuing focus on revenue enhancement and cost control within the group has contributed to a significant increase in operating income by 60% to BD 113.1 million from BD 70.7 million. The overall result was a net profit for the year of BD 91.6 million, 11% higher than the previous year (2013: BD 82.7 million). Impairment in the year amounted to BD 34.4 million (2013: BD 20.9 million) while net profit before impairment grew by 22%. Gulf Air reported revenues of BD 349.4 million for the year, an increase of 14% (2013: BD 307.2 million), as a result of increased passenger volumes and yields on routes. With improved cost controls and operating efficiencies, Gulf Air was able to register a net profit for the year after impairments and government grants of BD 15.8 million, compared to a net loss of BD 12.0 million in 2013. Alba achieved a 9.7% increase in revenue (BD 821.7 million in 2014 compared to BD 749.3 million in 2013) on the back of higher LME prices for aluminium, particularly in the second half of the year. Alba also achieved higher premiums on its value-added products. As a result, Alba achieved a net profit for the year of BD 96.4 million in 2014, compared to a net profit of BD 79.8 million in 2013. Bahrain Telecommunications Company ("Batelco") grew its net profit by 12%, making a contribution to the group net profit of BD 17.7 million. National Bank of Bahrain increased net profits by 4%, contributing BD 24.3 million to the group net profit.

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