SASCO Profits Fell to SR11.4 Million during the 3Q by 35%

Saudi Automotive Services Co. (SASCO) net profit after zakat and tax decreased to SR11.4 million during the third quarter, compared to SR17.4 million during the same quarter of the previous year, by 35%.

This came after Saudi Automotive Services Co. (SASCO) announced on Wednesday its interim financial results for the period ended September 30, 2021 (Nine Months)

The gross profit amounted to SR36 million during the third quarter, compared to SR40 million during the same quarter of the previous year, a decrease of 8%.

The Operational profit amounted to SR23 million during the third quarter, compared to SR29 million during the same quarter of the previous year, a decrease of 20%.

The net profit after zakat and tax during the current period amounted to SR36 million, compared to SR30 million during the same period of the previous year, an increase of 18%.

Profits per share during the current period amounted to SR0.59, compared to SR0.5 during the same period of the previous year.

The reason for the decrease in net profit during the current quarter compared to the same quarter of the previous year is due to the decrease in the cost of revenue during the same quarter of the previous year due to stock profit resulting from fuel price increasing in addition to increase in general and administrative expenses and financing costs during the current quarter, despite the increase in sales and other income during the current quarter.

The reason for the decrease in net profit during the current quarter compared to the previous quarter is due to the increase in general and administrative expenses, which led to a decrease in net profit from main operations, despite decrease in marketing expenses and financing costs, and increase in other revenues.

The reason for increase in net profit during current period compared to the same period of the previous year is due to an increase in revenues by 87%, and an increase in investment profits, in addition to the inclusion of the same period of the previous year to provision for expected credit losses. Despite the increase in general and administrative expenses, marketing expenses, financing costs and decrease in other revenues.

Comparative period for year 2020 includes the initiatives granted by the state in addition to the rental discounts obtained during the pandemic period, which contributed to reducing the cost of revenue, which led to an increase in the total profit for the period for year 2020.

The fuel price was changed during the first half of 2021 while fixed price during third quarter.