Trafco B S C : 2022 Annual Report (English)

ANNUAL 2022

REPORTwww.trafco.com

GROWTH

Driven by excellence.

Evolving to inspire growth

ANNUAL 2021

REPORT

Unifying strengths for a better tomorrow

Corporate Office

P O Box 20202, Manama

Kingdom of Bahrain Telephone: [phone]

Fax: [phone]www.trafco.comemail:[e-mail]

His Royal Highness	His Majesty
Prince Salman bin	King Hamad bin
Hamad Al Khalifa	Isa Al Khalifa
The Crown Prince	King of the Kingdom of
and Prime Minister	Bahrain
of the Kingdom of Bahrain

Company Profile

45 years of exceptional service

Trafco Group B.S.C (TRAFCO) was incorporated in the year 1977 as a public joint stock company as part of an initiative to revolutionize and rejuvenate the food industry of the Kingdom of Bahrain. The Company was successfully turned into Public Share Holding Company with initial public offering in 1980 and was later listed in Bahrain Bourse. In the last 4 decades the Company en route to success has achieved several milestones and has earned itself the reputation of being one among the major Fast Moving Consumer Goods (FMCG) industries in the Kingdom of Bahrain. Born out of a vision to be at the forefront of the food industry, TRAFCO is today a household name synonymous with some of the finest food products locally produced or imported from worldwide. Moreover, being one of the oldest food companies in Bahrain, it has gained trust and admiration for its commitment to quality, value and service excellence.

Serving Bahrain with the best from across the globe

The core business of the group is import & distribution of food & non-food products, manufacturing, logistics & related activities and with group annual sales turnover of over US$ 100 million. TRAFCO is one of the largest & biggest FMCG conglomerates in Bahrain with an extensive range of products comprising of canned, frozen & dry food and nonfood products, general commodities, Eggs, fresh fruits and vegetables as well as chilled & frozen meat imported from countries such as Australia, Brazil, Europe, the Far East, India, UK, USA, Pakistan, Turkey besides Arab and the Middle East countries. With stringent and reliable quality control systems in place, TRAFCO continues to introduce many world-renowned brands with the assurance of excellent quality and exceptional service. Trafco is accredited with the internationally recognized certificate of ISO 22000:2018 and HACCP in FMCG handling, storage and distribution.

Success through synergy

As part of its vision to become a dominant player in the food industry, TRAFCO is propelling its expansion through organic and inorganic growth. TRAFCO invested in developing the food industry of Bahrain by acquiring BWBB, BFFC, Metro Markets, Trafco Logistics Co. (TLC), Bahrain Livestock Company and by owning majority stake in Awal Dairy Company W.L.L., and BANZ Group. To serve Bahrain's objective of economic integration among GCC countries, Kuwait Bahrain Dairy Company was established in 1992 in Kuwait as a wholly owned subsidiary of Awal Dairy. Awal Dairy exports its products to Kuwait, Saudi Arabia, UAE, Jordan, Iraq, Yemen, North & West Africa and Latin America. Awal Dairy expanded its operations in Kingdom of Saudi Arabia. The Metro Market division is a retail arm of Trafco. Spanning across various parts of Bahrain, Metro is undoubtedly one of the rapidly expanding customers friendly market by adding more outlets, year on year in the Kingdom and offering Trafco's major products at competitive price. Further, during June 2022, BLSC became wholly owned 100% subsidiary of Trafco Group, earlier it was an associate company.

BWBB: Bahrain Water Bottling & Beverages, 100% subsidiary of TRAFCO has received HACCP certificate & ISO 22000:2018 for the quality of water it produces, awarded by institutions specializing in water analysis supported by Saudi and the Gulf standards. BWBB is one among very few companies in Bahrain that are into manufacturing and bottling of mineral water with strict adherence to quality control. BWBB is the market leader in the water bottling industry and TYLOS is the brand leader in the segment in addition to other brands like Selsabil, MARWA and Cloud9. Apart from the private labeling business, the

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company is also manufacturing 'metro' brand in its production line which is marketed by Trafco. The Company is also trading in juice products and potato chips which are well accepted in the market.

BFFC: Bahrain Fresh Fruits Company, was acquired in the year 2009 and is 100% subsidiary of TRAFCO. The Company was incorporated in the year 1998 and with its state-of-the-art infrastructure along with a dedicated & committed workforce has become a dominant player in the FMCG sector. BFFC is very active in two core food businesses - one being import and distribution of fresh fruits & vegetables and the other, import and distribution of frozen, chilled & dry food and non-food products. Our fruits & vegetables division is one of the biggest in Bahrain with largest banana ripening chambers. Few of the brands to reckon with in FMCG division are Bridel from Lactalies Europe, and Chiquita & Fruits brand bananas from Ecuador, Unef Chicken from Brazil.

Trafco Logistics: Trafco Logistics Company, which commenced its operation in May 2010 is conveniently located in Galali. It has received HACCP certificate & ISO 22000:2018 for the category of "Receiving, Storage & Distribution of Dry, Chilled and Frozen food products". The US$ 14 million logistics complex is a wholly owned subsidiary of TRAFCO which is focusing on 3PL. This state-of-the-art logistic facility with sophisticated technology and exceeding 20,000 cubic meter space with Frozen, Chilled and Dry facilities located in close proximity to the airport and the new seaport of Khalifa Bin Salman port in Muharraq has propelled TRAFCO into the elite group of logistic solution providers in Bahrain. The Group has identified to expand additional frozen storage facility of 2,500 sq meter at a cost of BD 3 millions since its customer base is increasing including contracts with government institutions.

BLSC: Bahrain Livestock Company was established in year 2000. It was partially owned by TRAFCO as an associate and effective from June 2022 TRAFCO GROUP acquired 100% ownership in this company. This company owned the central slaughterhouse of Bahrain, with major imports of livestock mainly from Australia as well as importing and distributing chilled & frozen meat. The Company concentrates on frozen & chilled meat and is expanding to value added activities in thefresh meat sector apart from diversifying into import and sale of other food commodities.

Awal Dairy: The first dairy company in Bahrain incorporated in the year 1963, TRAFCO holds 51% shareholding in Awal Dairy. The Company is a HACCP & ISO 22000:2018 certified company and adheres to international food and safety standards. Latest technology, innovative & excellent products, proficient manpower, sophisticated logistics and outstandingcustomer care have made Awal Dairy the market leader in

Bahrain. Awal Dairy offers a novel range of fruit juices and drinks, fresh milk under brand name "Noor", UHT milk under brand name "Awal" and "Fabion" ice creams in addition to other value-added products. The Company, with a workforce of around 300 people and with a combined production capacity of over 100,000 metric tons is one among the major dairies in the GCC region. The Company increased its export market share covering 18 countries including North & West Africa, Yemen and Latin America in addition to its export to GCC countries, Jordan and Iraq.

Glimpse of the future

Success, as we all know, is not the destination but an ongoing process. We, at TRAFCO, strongly believe in this philosophy. The reason why, the Company is all set to expand further in the future, thus, underscoring the management's objectives to serve not only the local market but also across the GCC region.

Nurturing the seeds of positive growth

SWOT Analysis

Strength

• • 45 years of presence with infrastructure facilities including logistics services

• • Key Customer Base

Weakness

• • Dependability on few major brands

Opportunities

• • Access to all sources of vendors, manufacturers and growers all over the world

• • Scope to diversify into related market segments

• • Distribution channels seeking new products

Threats

• • Growing competition by small and medium players in the same sector

• • Price sensitive market

Vision

TRAFCO to be recognized as a household name synonymous with finest food products in the GCC.

Mission

To ensure customer satisfaction by delivering superior quality products, the highest level of service and diverse range of world-leading brands at the most competitive prices.

Values

The company is guided by the following core values in its endeavour to realize its corporate vision:

T eamwork

R eliability

A ccountability F airness

C ommitment

O ptimum Value

Key Business Plan

• • Diversifying into sectors of private labelling

• • Accelerate new product launches, brands, agencies, distributions

• • Expand management team in sales/marketing

• • Strengthen human resources functions

• • Seek new market segments in food category

• • Locate new corporate premises

• • Participating in trade shows and fairs

• • Develop overseas market entry plans

• • Expansion in the export market

Strategic Goals

Backed by strong financial stability, support of the stakeholders, team of professionals HR, IT, Finance, Storage and efficient fleet management system, TRAFCO group strives to enhance their business by diversifying into various segments in food category.

ANNUAL REPORT 2022

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