Taiba Incurred Losses of SR117 mln at End of 2021

Taiba Investments Company recorded losses after zakat and tax of SR117 million during the year 2021, compared to profitability of SR99 million during the year before last.

This came after Taiba Investments Company announcement on Wednesday of the estimated annual financial results ending on 31.12.2021 (12 months).

The operational loss during the current period amounted to SR107 million, compared to a profit of SR7 million during the same period of the previous year.

The gross profit during the current period, it amounted to SR40 million, compared to SR123 million during the same period of the year before, a decline of 67%.

The loss per share during the current period amounted to SR0.73, compared to a profit of SR0.62 during the same period of the previous year.

The decrease in revenues generated by hotels and commercial centers during 2021, in addition to provisions recorded in other operating expenses on trade receivables from commercial Centres’ tenants, considering the continued effects of the Coronavirus pandemic on the main activity of Taiba.

Furthermore, the current year witnessed higher administrative expenses due to the increase in the consulting expenses, along with higher zakat expenses caused by the increase in current year Zakat base as a result of the sale of part of the investments in equity shares.

Other exceptional factors affecting prior year’s performance included:

1- Profit from the sale of investment in Fiberglass Oasis Company.

2- Revenue resulting from the reversal of provision booked in relation to the financial guarantee provided to the Saudi Industrial Development Fund as a collateral for the facilities granted to Fiberglass Oasis Company.

3- discontinued operations profits resulting from the sale of full investment in a subsidiary.”

The company said that some comparative figures have been reclassified to conform to the presentation of the current year’s figures.

Additional Information:

“The total other comprehensive income for 2021 reached SR 788.8 million (profit) in comparison to SR 33.56 million (profit) for 2020 as a result of the revaluation of the investment in equity shares at fair value as at the date of the financial statements.

As indicated in this announcement, some comparative figures were reclassified for comparability purposes, this resulted in the 2020 gross profit in this announcement to be SR123.24 million instead of SR125.17 million, as per the February 25, 2021 announcement of Taiba Investments Company results for the year ended 31.12.2020.