‎“Dur Hospitality” profits decreased to SR17 mln during Q1, by ‎‎47%‎

The net profit after zakat and tax for Dur Hospitality Company decreased to 17 million riyals during the first quarter, compared to 32 million riyals in the same quarter of last year, by 47%. This came after today’s announcement of the preliminary financial results for the period ending in 2023-03. -31 (3 months).

The operational profit amounted to 39 million riyals in the first quarter, compared to 23 million riyals in the same quarter of the previous year, an increase of 67%.

As for the gross profit, it amounted to 51 million riyals in the first quarter, compared to 35 million riyals in the same quarter of the previous year, with a growth of 46%.

Earnings per share in the current period amounted to 0.17 riyals, compared to 0.32 riyals in the same period last year.

The company’s operating revenues increased during the first quarter of 2023 by 22.5 million riyals, or by 15.4%, and the operating profit increased by 15.7 million riyals, or by 67.3%, compared to the same quarter of 2022, due to the increase in the company’s facility revenues due to the recovery of the Umrah season and the high demand for hotels in Riyadh.

The reason for the decrease in the net profit for the current quarter compared to the same quarter of the previous year is due to adjusting the net profit for the similar quarter to the profits achieved from the accounting treatment of financial derivatives, which amounted to 19.5 million riyals, and without the effect of that treatment, there is a growth in the net profit for the current quarter.

The reason for the increase in net profit during the current quarter compared to the previous quarter is due to the improvement in operating profit during the current quarter by 18.5 million riyals, or by 90% compared to the previous quarter.

The reason for the decrease in net profit during the current quarter compared to the previous quarter is due to the previous quarter being affected by the profit arising from the accounting treatment and proof of financial derivatives.

The company said that some comparative numbers have been reclassified to conform to the current presentation.

During the three-month period ending on December 31, 2022, the company processed the calculation of financial derivatives retrospectively related to previous periods in the consolidated financial statements, which were not recorded in the periods prior to December 31, 2022.