Bahrain Flour Mills posts US$790,000 Q1 loss amid investment, depreciation pressures
According to the company, the sharp reversal in profitability was attributed to several compounding factors, including a decrease in the fair value of investments, higher depreciation costs
BAHRAIN – Bahrain Flour Mills Company (Al-Matahin) has reported a net loss of BHD 297,874 (US$ 790,000) for the first quarter ending March 31, 2025, a significant decline from the BHD 597,147 (approx. USD 1.58 million) net profit recorded in the same period of 2024.
The company’s board of directors, chaired by Basim Al Saie, convened on May 12 to approve the financial statements for the quarter and assess key strategic challenges impacting performance.
According to the company, the sharp reversal in profitability was attributed to several compounding factors, including a decrease in the fair value of investments, higher depreciation costs related to the company’s new production line, and newly introduced lease provisions for the upcoming mill plant.
These developments collectively pushed the company into an operating loss of BHD 32,175 (US$ 85,000), compared to an operating profit of BHD 126,238 (US$ 335,000) in Q1 2024.
Basic and diluted losses per share stood at 12 fils for the quarter, a downturn from the 24.05 fils earnings per share reported in the prior-year period, reflecting the broader impact of the operational and financial headwinds.
Sales revenue for the first quarter also dipped by 12%, down to BHD 1.94 million (US$ 5.14 million) from BHD 2.21 million (US$ 5.86 million) a year earlier. The company attributed this decline to waning demand for non-subsidized flour products and reduced bran production volumes.
In terms of balance sheet metrics, Bahrain Flour Mills reported a 4% drop in total equity, which stood at BHD 25.92 million (US$ 68.61 million) as of March 31, 2025, compared to BHD 26.86 million (US$ 71.12 million) at the end of December 2024.
Meanwhile, total assets increased by 8% to BHD 42.84 million (US$ 113.47 million), up from BHD 39.71 million (US$ 105.18 million) the previous year, reflecting investments and capital expenditures linked to the new mill plant project.
Chairman Basim Al Saie expressed appreciation to the board, executive management, and employees for their continuous efforts, affirming confidence in the company’s long-term vision despite the current challenges.
“We remain committed to steering Al-Matahin towards greater growth and stability,” he said.
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