Gulf Hotels Group reports net profit in Q3

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MANAMA: Gulf Hotels Group has swung to a net profit of BD833,821 during the third quarter of 2021 from a loss of BD1,682,744 in same period last year, with an increase in the quarter turnover of BD2.517 million.

The profit per share is 4 fils compared to loss of 8 fils in the third quarter of last year.

Total comprehensive income for Q3-2021 was BD905,701 compared to a loss of BD1.174m for Q3-2020, with an increase in the quarter turnover of BD 2.080m. Gross profit was BD2.852m, compared to BD1.155m for the same period last year, with an increase of BD1.697m or 146.93pc.

Revenue was BD6.117m, compared to BD3.727m for the same period last year, with an increase of BD2.39m or 64.13pc.

The increase in net profit resulted mainly from increase in revenue of BD2.390m with decreases in administration expenses as well as decrease in depreciation by BD260,536 and interest expense by BD89,680.

For the first nine months of 2021, the net profit was BD202,187 compared to a loss of BD4.682m in the same period last year, with an increase in turnover of BD4.884m.

The profit per share is 1 fil compared to loss of 21 fils in the same period last year.

Total comprehensive income was BD331,230 compared to a loss of BD5.442m fils in the same period last year, with an increase in the quarter turnover profit of BD5.773m.

Gross profit was BD6.657m, compared to BD5.371m for the same period last year, with an increase of BD1.286m or 23.94pc.

Revenue was BD15.245m, compared to BD14.798m for the same period last year, with an increase of BD447,659 or 3.03pc.

Total equity (excluding minority interests) for the YTD (January to September) was BD98.676m compared to BD100.622m as of end-September last year, with a decrease of BD1.945m or 1.93pc.

Total assets for the YTD were BD111.475m compared to BD118.780m in the previous year, with a decrease of BD7.305m or 6.15pc.

The increase in the net profit for the nine months in comparison to the same period last year resulted mainly from the increase in revenue by BD447,659, decrease in operating costs by BD837,966, reducing administrative and staff cost by BD111,270, and depreciation by BD788,807, reduction in the interest expense by BD214,399, doubtful debts down by BD369,657, and zero property and equipment impairment as against BD2,315,810 previous year.

The company’s EBIDTA excluding impairment of BD5.131m compared to BD3.566m for the same period last year, with an increase of BD1.565m or 43.89pc.

Group chairman Farouk Almoayyed said: “Since the easing of restrictions in early July and the application of the current traffic light system, where most of the third quarter has been on the green level, Gulf Hotels Group has seen a strong bounce back in performance. The lower cost base that was achieved when downsizing operations during the height of Covid-19 have been maintained, resulting in significantly better profit conversion whereby a number of divisions actually out-performed the same month in pre-pandemic 2019.”

He added: “We are seeing a resurgence in occupancy, in restaurant business and in the conference and meeting market, however the impending increase of VAT from 5pc to 10pc may well impact on the recovery as disposable incomes are further squeezed.”

Gulf Hotels Group’s chief executive Garfield Jones said: “Our hotel activities are starting to return to normal with a full promotional programme in the last quarter of 2021 and plans are well advanced to reopen the Gulf Hotel’s La Pergola Restaurant.”

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