SASCO reports 33% profit slide to SR8mln in 1Q

Saudi Automotive Services Co. (SASCO) announced that its profits after zakat and tax declined 33.2% to SR 8.02 million during the first quarter of the year 2022 compared to SR 12.01 million during the same period of 2021.

This came after SASCO announcement on Sunday of the preliminary financial results for the period ending on 31.03.2022 (three months).

The operational profits of the company fell 13.2% to SR 20.4 million in 1Q against SR 23.5 million in the same period of the year ago.

Moreover, Elm’s gross profit slid 5.3% to SR 35.6 million in the first quarter this year from SR 37.6 million, while profit per share rose to SR 0.13 from SR 0.2.

Total shareholders’ equity (after deducting minority equity) grew 0.88% to SR 824.9 million in the first quarter of 2022 from SR 817.7 million a year earlier.

Lower profits were mainly driven by the decrease in gross profit due to the inclusion in the same quarter of the previous year on stock adjustments resulting from the change in fuel prices, in addition to the suspension of some sites for development, a decrease in the income margin from diesel and an increase in costs Operating, G&A expenses, financing costs, increase in IFRS 16 impact, and a decrease in investment profits, despite the increase in sales Volume and other income.

The reason for decrease in net profit during the current quarter compared to the previous quarter is due to the increase in the cost of sales due to the suspension of some development sites, the decrease in the income margin from diesel and increase in operating costs, increase in IFRS 16 impact, and inclusion of the previous quarter on dividend income despite the decrease in G&A expenses, marketing expenses and financing costs and increase in the sales Volume and other revenues.

Additional Information:

The realized profit from liquidating company’s portfolio amounted of 8 million SR was included in comprehensive income, minus the valuation of the portfolio on December 31, 2021.