BMMI, a major retail, distribution and contract supply group based in Bahrain, has announced a first-quarter net profit of BD2.46 million ($6.52 million), up from BD1.53 million for the same period last year.

The sales jumped to BD22.73 million from BD20.33 million and gross profit was ahead to BD6.02 million from BD5.04 million.

The group reported a strong revenue growth of almost 12 per cent over the quarter, with most business units performing at or above expectations.

Gross profit for the period crossed BD6 million which was 19pc above 2011. Despite a challenging environment, the group achieved a remarkable 61pc growth in net profit for the quarter, almost BD1 million ahead of the same period in 2011.

This success can be attributed to operational changes during 2011 which have enabled the group to perform more efficiently, coupled with effective management of overheads which have resulted in improved margins across the group.

Investment income and gain on investments carried at fair value amounted to BD320,000 compared to BD190,000 recorded in 2011. Earnings per share reached 20 fils compared to 12 fils in 2011.

The group remains focused on delivering its five-year strategy, with the intention of reducing profit dependency on one core business stream.

This continues to be supported by new business development activities which aim at expanding revenue generating streams over a wider geographical area. In addition, other initiatives being progressed include hotel development, leisure downstream and supermarket expansion in Bahrain and Saudi Arabia.

'Despite challenges in the Middle East and Africa, BMMI has started the year with first-quarter results surpassing those of the same period last year,' said chairman Abdulla Buhindi.

'This bodes well for the rest of 2012, during which we will continue to make progress on the group's strategic intent to grow the business, both financially and geographically, with substantial investments in our human and technical resources,' he added.-TradeArabia News Service