Al-Saif Gallery profits decrease to SAR 51 million during Q1 by 14.5%

Alsaif Store for Development and Investment Co. net profit after zakat and tax decreased to SAR 51 million during the first quarter, compared to SAR 59 million riyals in the same quarter of last year, by 14.5%. This came after the announcement on Thursday of the interim financial results for the period ended on 31.03.2023 (three months).

The operational profit amounted to SAR 47 million in the first quarter, compared to SAR 56 million in the same quarter of the previous year, a decline of 15%.

As for the gross profit, it amounted to SAR 78 million in the current period, compared to SAR 85 million in the same period last year, with a decrease of 9%.

Profits per share in the current period amounted to SAR 1.44, compared to SAR 1.68 in the same period last year.

The company’s profits decreased by 14.5% compared to the same period of the previous year due to the following reasons:

– A decrease in sales by 9.3% due to the end of the seasonal sales season, with the start of the blessed month of Ramadan on 23.03.2023 (before the salaries of March 2023) compared to the same period last year, in which Ramadan began on 02.04.2022, which has the effect of losing seasonal sales of the Ramadan household utensils and appliances

– An increase in selling and marketing expenses by 10.6%, due to the increase in marketing expenses to support sales, as well as those related to the promotion and the opening of branches in the GCC countries, in the UAE and Kuwait branches

The company’s profits increased by 80.2% compared to the previous quarter due to the following reasons:

– Sales increased by 21.8%, due to the Ramadan season

– An increase in the gross profit margin from 18.6% to 33.8%, due to the decrease in the costs of purchased goods and shipping costs, in addition to the improvement in the operational efficiency in branches

The company stated that earnings per share for the financial period ended 31.03.2023 have been recalculated based on the actual number of ordinary shares issued at the end of the period instead of the weighted average number of shares. Earnings per share for the period ending 31.03.2022 were also recalculated in order to unify the comparison with the period ending 31.03.2023.