The Ordinary General Assembly of Travco Group held its annual meeting yesterday morning, Wednesday, March 30, 2022, following the quorum was completed Legal attendance of 76.86%From the shareholders and in the presence of representatives from the Ministry of Industry, Commerce and Tourism, the Central Bank of Bahrain and the group’s auditors Ernst & Young, Bahrain Bourse and representatives of the Registrar of Shares, Carvey Computer Share Company, to discuss the agenda and which It was previously advertised in the local newspapers. The General Assembly approved all items on the agenda, including the Board of Directors’ recommendation to distribute cash dividends by 14%of the group’s capital in a total amount of 1,038,766 BD on the shareholders registered in the company’s records on the day of the meeting.
Ibrahim Zainal, Chairman of the Board of Directors, said:,After the meeting ended that the General Assembly discussed the audited budget of the group, which shows that the total sales of the group reached regarding 35,72 million Bahraini dinars, a slight decrease of 3%About the total sales of the group for the previous year 2020, which was regarding 36,87 million Bahraini Dinars, while the group achieved a net profit this year attributable to the shareholders of Travco in the amount of 1,30 million Bahraini dinars for 1,44 million Bahraini dinars for the previous year 2020, a decrease of regarding 10%. The total shareholders’ equity amounted to 27,48 million Bahraini dinars this year compared to 26,87 million Bahraini dinars in the previous year and earnings per share were 18 fils compared to 19 fils in the year previous.
In his report to the shareholders for the fiscal year ending on December 31, 2021, the Chairman of the Board of Directors referred to: That despite the increase in prices of basic foodstuffs in general during the year and the impact of this on the total value For sales, however, the group was able to maintain its share in the total market size of food commodities and improve The performance of its business in this area, as the report indicated that the continued high cost of distribution, marketing and various fees Claimed by sales outlets has affected the overall profit rate.
And the group’s commitment to food security and providing the best services, a lease extension contract was signed for the plot of land that It has several subsidiaries of the group until the year 2048, when the company is working on a project to expand Travco logistic warehouses. To meet the increasing demand for chilled and refrigerated storage spaces in the Kingdom of Bahrain.
On the part of the sister companies and subsidiaries of the group, Awal Dairy Company is owned by the group by 51 percent%It continued to achieve excellent results this year, the total sales of the sister company for the year reached 15,10 million Bahraini dinars for 14,BD 70 million in the previous year, an increase of 2.65%. The performance of the company’s branches in both the State of Kuwait and the Eastern Province in the Kingdom of Saudi Arabia has improved despite It is very competitive for our products in these countries. The effect of increasing the VAT in Saudi Arabia was from 5%to 15%Significant impact on sales volume, especially for small packages of dairy products, juices and ice cream. Also, the cost of raw materials used in production and paper packaging increased significantly, and following the company gradually depleted Its purchased stock at previous prices, especially in the second half of the year, began to affect the cost of the product The gross profit margin has significantly decreased, especially since the company is completely dependent on importing materials from the markets Globalism. And
As for the Bahrain Water and Beverage Bottling Company, which is affiliated with the group, the market in the bottled water sector witnessed more From competition and price war, especially due to the decline in sales in the hotel sector and catering companies and the increase in the number of factories that Produces bottled water in the Kingdom of Bahrain and focus on retail sales and direct sales to consumers and recorded selling prices Wholesale decline markedly. As a result, although the company continues to obtain undertakings to bottle water under the different brands of the parties However, total sales decreased compared to the previous year by 4.82%from 1,BHD 60 million to 1,52 million dinars this year, and the significant decline in the profit margin had a greater impact on net Profits that fell sharply from regarding 42 thousand BD to 20 thousand BD this the year. The management expects better results during the coming year as the equipment and machinery previously purchased will be completed It will be installed in the coming months, which will increase the production capacity of the factory by regarding 75 .%To meet the increasing demand for bottled water. And
Improved performance in Bahrain Fresh Fruits Company wholly owned by the group as a result of re-arrangement and restructuring of management and focus on Goods with more turnover and work to reduce administrative expenses. As a result, the company achieved a net profit of 24 thousand Bahraini dinars, compared to a loss of 5 thousand Bahraini dinars The previous year recorded total sales of $2,BD 10 million, down 2,28%for the corresponding period. And
Travco Logistics Company, a subsidiary of the group, witnessed a decline in its profits from 106,000 dinars in the previous year. To 66,000 Bahraini dinars this year, as a result of the intensification of competition in this sector and the decline in service prices Warehousing and logistical.
As for the Bahrain Livestock Company, owned by the group by 36.26%For the third year, its results were negative despite the restructuring of the administration, bearing in mind that its slaughterhouse is in the area of Sitra is open to work and provide slaughter services to third parties.
During the year, the construction of new cooled and dry warehouses for the group’s food commodities was completed on two plots of land owned by the company in the Bahrain Investment Gate area in the east of the city of Hidd, and work began in this area Stores as of August 2021, and in commitment to implementing clean energy, we have extended the power Electricity using partially solar energy for the stores. And
In conclusion, Chairman of the Board of Directors Ibrahim Zainal confirmed that the group is looking forward to further improvement in its performance the year during the next year, and the group adheres to all the requirements of governance and transparency, and the shareholders were informed during Meeting through the full report on the new governance charter and related party transactions according to the requirements of the law No. 19 of 2018 for the year was approved by the General Assembly. The Extraordinary General Assembly also approved making the necessary amendments to the Memorandum of Association and Articles of Association of the company Formulated to comply with the requirements of the law.
Since the current session of the Board of Directors ended with the end of the fiscal year, the opening of The door for candidacy for membership of the Board of Directors according to the requirements of the law and the Bahrain Stock Exchange. 15 candidates have applied for candidacy. Announced For their names through the website of the Bahrain Bourse and Travco Group in accordance with the regulations and laws. The election process took place during the meeting of the Ordinary General Assembly, where (10) ten members were elected to the formation The Board of Directors for the next term for a period of (3) years, according to the company’s articles of association, and they are: Ibrahim Muhammad Ali Zainal / Youssef Saleh Abdullah Al-Saleh / Issam Abdullah Youssef Fakhro / Ibrahim Salah El-Din Ahmed Ibrahim / Sami Mohamed Youssef Jalal / Jihad Youssef Abdullah Amin / Abd al-Ridha Muhammad Reda al-Dailami / Ali Youssef Abdul Rahman Abdul Rahim / Fuad Ibrahim Khalil Kanoo / Sufian Khaled Al-Moayad. And
