Ground services return to profitability during Q1 by SAR 40 million

Saudi Ground Services Co. recorded a net profit after zakat and tax of SAR 40 million during the first quarter, compared to a loss of SAR 19 million in the same quarter of last year. 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 40.4 million in the first quarter, compared to a loss of SAR 21 million in the same quarter of the previous year.

As for the total profit, it amounted to SAR 40.4 million in the current period, compared to a loss of SAR 21.4 million in the same period last year.

Profits per share in the current period amounted to SAR 0.21, compared to a loss of SAR 0.1 in the same period last year.

The company recorded a net profit of SAR 40 million, which is an improvement of SAR 59 million, when comparing to a net loss of SAR 19 million for same quarter of the previous year. This is mainly due to the increase in revenue by SAR 139 million (increase by 33%), driven by the gradual increase in the air traffic. The company also recorded an increase in gross profit of SAR 57 million (increase of 130%), despite an increase in cost of revenues by SAR 82 million (increase of 22%) compared to the same quarter of the previous year.

The share of profits from equity accounted investments increased by SAR 7 million and the Zakat expense decreased by SAR 6 million compared to the same quarter of the previous year. In addition, income from term deposits increased by SAR 11 million which had a positive impact on the company’s results.

This is despite the company recording a gain from the disposal of equity shares amounting to SAR 24 million in the same quarter of the previous year.

The company achieved a net profit of SAR 40 million which is an improvement of SAR 148 million, when comparing to a net loss of SAR 108 million for the previous quarter. This is due to the increase in revenues by SAR 62 million (increase of 12%) compared to the previous quarter and decrease in costs by SAR 44 million, (decrease of 8%). In addition, zakat expense and impairment loss on receivables decreased by SAR 67 million, as a result of the company’s efforts by introducing several initiatives aimed at raising operating efficiency and returning to profitability.

This is despite the fact that the company recorded a decrease in share of profits from equity accounted investments amounting to SAR 17.5 million (decrease of 74%) compared to the previous quarter.

The company stated that certain prior period amounts have been reclassified for purposes of comparison and better presentation (refer Note 21 of the Financial Statement)

Total revenue for the current quarter amounted to SAR 564 million compared to SAR 425 million for the same quarter of the previous year, an increase of 33%. The operating profit for the current quarter amounted to SAR 40 million, compared to a loss of SAR 21 million in the same quarter of the previous year. The comprehensive income for the current quarter amounted to SAR 40 million, compared to a comprehensive loss of SAR 26 million for the previous quarter, an increase of SAR 66 million, and a comprehensive loss of SAR 19 million for the same quarter of the previous year. The company has no minority rights, as the total shareholders’ equity amounted to SAR 2,142 million for the current period, compared to SAR 2,246 million for the same period previous year.