Saudi Airlines Catering Records Profit of SR15.4 mln during the 3Q

The Saudi Airlines Catering Company recorded a profit after zakat and tax of SR15.4 million during the third quarter, compared to losses of SR106.5 million during the same quarter of the previous year.

This came after Saudi Airlines Catering Co. announced on Tuesday its interim financial results for the period ending on 2021-09-30 (nine months).

As for the operational profit, it amounted to SR29.3 million during the third quarter, compared to a loss of SR128 million during the same quarter of the previous year.

The gross profit amounted to SR53.8 million during the third quarter, compared to a loss of SR92.6 million during the same quarter of the previous year.

The net loss during the current period amounted to SR32.1, compared to SR234.7 during the same period of the previous year, a decrease of 86.32%.

The loss per share during the current period amounted to SR0.39, compared to SR2.86 during the same period of the previous year.

The total comprehensive profit for the period (Q3) amounts to SR 15.4 million which is a change of 114% compared to loss in corresponding period of the previous year; This is due to improved sales in particular, the resumptions of commercial flights during the period.

The resumptions of flights led to a direct impact on the company’s operations with an increase of revenue by 115% (amounting to SR 177.4 million).

Despite the challenges of the pandemic, Saudi Airlines Catering Company has considered and implemented various initiatives to improve the operational efficiency and optimize the costs, thereby reducing the impact on the company’s profitability, sustainability and competitiveness.

Saudi Airlines Catering Company reported a profit of SAR 15.4 million in current quarter and with an increase in turnover by 29% (SR 75.1 million) due to the resumptions of flights and Hajj Operations. Initiatives on controlling the operating cost also contributed to reduction in losses significantly.

The main reasons for the decrease in net loss to SAR 32.1 million from SR 234.7 million were improved sales and the reduction of the cost of materials, in addition to the decrease in allowance for expected credit loss expense by SR 33.2 million (60% reduction) as compared to the similar period of the previous year.

Saudi Airlines Catering Company has incurred losses during the period ended on 30 September 2021 amounting to SAR 32.1 million. This is -3.7% of SAR. 860.1 million net assets as at 31 December 2020 (-3.9% of net assets as at 30 September 2021).

The accumulated losses as at end of September 2021 amounting to SR 238.0 million representing -29.0% of the share capital.

Saudi Airlines Catering Company confirms that it will apply and follow the procedures and instructions related to listed companies with accumulated losses reaching 20% or more of their total capital.

Earnings per share has been calculated based on net income/(loss) after zakat and tax.