Burgerizzr profits post a leap to 346% during Q3 to SAR 4 million

Shatirah House Restaurant Co. (Burgerizzer) net profit after zakat and tax increased to SAR 4 million during the third quarter, compared to SAR 909 thousand in the same quarter of last year, by 346%. This came after the announcement on Wednesday of the initial summary consolidated financial results for the period ending on September 30, 2023 (9 months).

Total operating profit reached SAR 4.4 million in the third quarter, compared to SAR 1.24 million in the same quarter of the previous year, an increase of 259%.

Net profit after zakat and tax in the 9-month period amounted to SAR 7.3 million, compared to SAR 4 million in the same period last year, a growth of 88%.

Earnings per share in the current period amounted to SAR 0.21, compared to SAR 0.11 in the same period last year.

The net profit of the Company for Q3 2023 increased by SAR 3.1 million i.e. by 346% as compared to the net profit of the same quarter of 2022 because:

Revenues: were increased as compared to same quarter of previous year by approximately 6.4% mainly due to increase in same store sales and guest count.

Gross profit: increased by 20% mainly because of increase in average sales per branch and gross profit margin increased from 27.9% in the same period of previous year to 31.4% in current period. Food cost and labour cost decreased, further, rent, utilities and maintenance expenses increased

Selling Expenses: Increased by SAR 710 thousand, or 6.38%, mainly due to an increase in delivery fees resulted from the increased contribution of online channels, including aggregators.

Administrative Expenses: Decreased by SAR 140 thousand, or 2.12%, mainly due to a decrease in number of employees and management efforts to more efficiently utilize support resources.

Others: Finance costs remain same with the previous period and other income increased by SR 76.3 thousand.

The decrease of Net profit by 13.7% for the third quarter 2023 (SAR 4 million), as compared to the second quarter of 2023 (SAR 4.7 million) is due to an increase in Selling and Administration expenses.

The net profit of the Company for the period ended 30 Sep 2023 increased by SAR 3.4 million i.e. by 88.3% as compared to the net profit of the previous period because:

Revenues: were increased as compared to last period by approximately 8.2%, mainly due to an increase in same-store sales and guest count. The number of branches remains 103 by the end of the current period as compared to 103 branches at the end of same period of the previous year. 5 new branches were added and 5 branches were closed in this period.

Gross profit: increased by 11.3% mainly because of increase in average sales per branch and gross profit margin increased from 28.2% in the same period of previous year to 29.1% in current period. Further, depreciation, rent, utilities and maintenance expenses are increased.

Selling Expenses: Increased by SAR 3.3 million, or 11.88% mainly due to increase in delivery fees resulted from increased contribution of online channels including aggregators.

Administrative Expenses: Decreased by SAR 1.4 million, or 7.2% mainly due to decrease in number of employees and management efforts to more efficiently utilize support resources.

Others: Finance costs are increased by SAR 54 thousand, loss on disposal of property and equipment is increased by SAR 642 thousand or 94.17% and other income is increased by SAR 154 thousand.

Additional Information

The comparative information for the condensed interim statement of profit and loss and other comprehensive income for the three- and nine-month periods ended 30 September 2023, and changes in equity and cash flows for the nine months period ended 30 September 2023 and related explanatory notes, have not been audited or reviewed.