Kingdom Holding reports profit jump of 6407% in 1Q

Kingdom Holding Co. announced that its profits after zakat and tax leaped 6407% to SR 5.9 billion in the first quarter of the current year from SR 91 million during the same period of 2021.

The company’s operational profit also jumped by 2843% to SR 6.16 billion from just SR 209 million in the same period a year ago.

Gross profits of the company soared by 293% to SR 250 million in 1Q from SR 64 million in the same quarter of the last year, while profit per share (EPS) rose to SR 1.6 from SR 0.02.

The jump in the profit is mainly driven by the increase in gain on sale of half of the stake of an associate, increase in hotel and other operating revenues, increase in share of result on equity accounted investees, increase in income from gain in investment at FVTPL, increase in dividend income, in addition to increase in gain on sale of investment property. Despite decrease in other gain, increase in Zakat expense, increase in hotel and other operating costs, increase in general, administrative, and marketing expenses, increase in income tax expense, in addition to increase in financial charges.

Reasons of the increase in profit for the quarter compared to last quarter is due to increase in gain on sale of half of the stake of an associate, decrease in impairment of financial assets, increase in share of result in accounting investees, increase in income from gain in investment at FVTPL, decrease in income tax expense, decrease in financial charges, decrease in General, administrative, and marketing expenses. Decrease in Zakat expense, increase in other gain. In addition to decrease in Hotel and other operating cost. Despite decrease in gain on sale of investment property, decrease in dividend income, in addition to decrease in hotel and other operating revenues.