‎“Al-Hokair Group” records a profit of SR 5 million during Q2‎

Abdul Mohsen Al-Hokair Group for Tourism and Development recorded a net profit after zakat and tax of 5 million riyals during the second quarter, compared to a loss of 35.6 million riyals in the same quarter of last year. This came after today’s announcement of the preliminary financial results for the period ending on June 30, 2023. 6 months.

Operational profit amounted to 19.3 million riyals in the second quarter, compared to a loss of 22.8 million riyals in the same quarter of last year, with a decline, while the total profit amounted to 56 million riyals in the second quarter, compared to 23.4 million riyals in the same quarter of last year, an increase of 138.6. %.

The net loss after zakat and tax in the current period amounted to 29.4 million riyals, compared to 67.6 million riyals in the same period last year, at a rate of 56.5%.

The loss per share amounted to 0.09 riyals in the current period, compared to 0.21 riyals in the same period last year.

The reason for the increase in net profit during the current quarter compared to the same quarter of the previous year is due to:

The group’s net profit increased during the current quarter by 40.60 million riyals compared to the same quarter of the previous year, as the group achieved a net profit of 4.94 million riyals during the current quarter compared to a net loss of 35.66 million Saudi riyals during the same quarter of the previous year. The financial performance of the group was according to the following details

1- The group’s revenues increased by 29.02 million Saudi riyals (16.9%), as it achieved revenues of 201.08 million Saudi riyals compared to revenues of 172.07 million Saudi riyals, and the performance of its main sectors was as follows:

1.1- Hotel sector revenues increased by 9.49 million Saudi riyals (11.1%), as the sector achieved revenues of 94.81 million Saudi riyals compared to revenues of 85.32 million Saudi riyals, which resulted mainly from the increase in the occupancy rates of the group’s hotels in various The regions of the Kingdom despite the decrease in the number of hotels in the sector due to the group’s policy of closing low-performance hotels to improve profitability margins, as well as the evacuation of some hotels due to the state’s expropriation of their ownership from the lessor (the main shareholder) for the public interest.

1.2- Revenues from the entertainment sector increased by 17.95 million Saudi riyals (23.3%), as the sector achieved revenues of 95.08 million Saudi riyals compared to revenues of 77.13 million Saudi riyals, which resulted mainly from recording revenues from the implementation of projects worth 14 million Saudi riyals

1.3- Revenues from other sectors increased by 1.58 million Saudi riyals, as those sectors achieved revenues of 11.19 million Saudi riyals, compared to revenues of 9.62 million Saudi riyals.

2- The group’s total profit increased by 32.55 million Saudi riyals (138.7%), as it achieved a total profit of 56.02 million Saudi riyals, compared to a total profit of 23.47 million Saudi riyals, which resulted mainly from the increase in the group’s revenues, according to Next:

2.1- The total profit of the hotel sector increased by 16.72 million Saudi riyals (250.70%), as the sector achieved a total profit of 23.39 million Saudi riyals compared to a total profit of 6.67 million Saudi riyals, which resulted mainly from the increase in revenues sector.

2.2- The total profit of the entertainment sector increased by 10.66 million Saudi riyals (60.7%), as the sector achieved a total profit of 28.23 million Saudi riyals compared to a total profit of 17.57 million Saudi riyals, which resulted mainly from the increase in revenues sector.

2.3- The total profit of other sectors increased by 5.17 million Saudi riyals, as the sectors achieved a total profit of 4.4 million Saudi riyals compared to a total loss of 0.77 million Saudi riyals, which resulted mainly from the increase in the revenues of those sectors.

3- The group’s operating profits increased by 42.21 million Saudi riyals, as it achieved operating profits of 19.37 million Saudi riyals, compared to operating losses of 22.84 million Saudi riyals, which resulted mainly from the increase in gross profit in addition to the group’s continuous efforts in Improving the efficiency of its operations and reducing its operating expenses

4- The group’s net profit increased by 40.60 million Saudi riyals, as it achieved a net profit of 4.94 million Saudi riyals, compared to a net loss of 35.66 million Saudi riyals, which resulted mainly from the improvement in results in operating profits.

5- The total comprehensive profit of the group increased by 42.12 million Saudi riyals, as it achieved a total comprehensive profit of 6.16 million Saudi riyals compared to a total comprehensive loss of 35.96 million Saudi riyals, which resulted mainly from the improvement in results in net profit.

The reason for the decrease in net profit during the current period compared to the same period of the previous year is due to:

The first item – the net loss of the group decreased during the current period 2023 by 38.25 million Saudi riyals (56.50%) compared to the same period of the previous year, as the group recorded a net loss of 29.4 million Saudi riyals during the current period compared to a net loss of 67.65 million Saudi riyals during the same period of the previous year, where the financial performance of the group was according to the following details:

1- Revenues increased by 20.48 million Saudi riyals (5.9%), as the group achieved revenues of 364.92 million Saudi riyals compared to revenues of 344.44 million Saudi riyals, and the performance of its main sectors was as follows:

1.1- Hotel sector revenues increased by 8.99 million Saudi riyals (4.9%), as the sector achieved revenues of 191.51 million Saudi riyals compared to revenues of 182.52 million Saudi riyals, which resulted mainly from the increase in the occupancy rates of the group’s hotels in various The regions of the Kingdom despite the decrease in the number of hotels in the sector due to the group’s policy of closing low-performance hotels to improve profitability margins, as well as the evacuation of some hotels due to the state’s expropriation of their ownership from the lessor (the main shareholder) for the public interest.

1.2- Revenues from the entertainment sector increased by 11.38 million Saudi riyals (8%), as the sector achieved revenues of 154.41 million Saudi riyals compared to revenues of 143.02 million Saudi riyals, which resulted mainly from recording revenues from the implementation of projects worth 14 million Saudi riyals

1.3- Revenues from other sectors increased slightly, amounting to 0.1 million Saudi riyals, as these sectors achieved revenues of 19 million Saudi riyals, compared to revenues of 18.9 million Saudi riyals.

2- The total profit increased by 30.30 million Saudi riyals (59.50%), as the group achieved a total profit of 81.24 million Saudi riyals compared to a total profit of 50.94 million Saudi riyals, which resulted mainly from the increase in the group’s revenues, according to Next:

2.1- The total profit of the hotel sector increased by 21.8 million Saudi riyals (92.80%), as the sector achieved a total profit of 45.36 million Saudi riyals, compared to a total profit of 23.53 million Saudi riyals, which resulted mainly from the increase in revenues sector.

2.2- The total profit of the entertainment sector increased by 4.83 million Saudi riyals (16.6%), as the sector achieved a total profit of 33.86 million Saudi riyals compared to a total profit of 29.03 million Saudi riyals, which resulted mainly from the increase in revenues sector.

2.3- The total profit of other sectors increased by 3.63 million Saudi riyals, as the sectors achieved a total profit of 2.02 million Saudi riyals compared to a total loss of 1.62 million Saudi riyals, which resulted mainly from the increase in the revenues of those sectors.

3- Operating profits increased by 44.96 million Saudi riyals, as the group achieved operating profits of 4.46 million Saudi riyals, compared to operating losses of 40.50 million Saudi riyals, which resulted mainly from the increase in gross profit.

4- The net loss decreased by 38.25 million Saudi riyals (56.50%), as the group recorded a net loss of 29.4 million Saudi riyals compared to a net loss of 67.65 million Saudi riyals, which mainly resulted from the improvement in results in operating profits.

5- The total comprehensive loss decreased by 40.17 million Saudi riyals (58.40%), as the group recorded a total comprehensive loss of 28.62 million Saudi riyals compared to a total comprehensive loss of 68.79 million Saudi riyals, which mainly resulted from the decrease in net loss.

The second item – share loss: the share loss amounted to 0.09 Saudi riyals per share as at the end of the current period of the year 2023, compared to a loss of 0.21 Saudi riyals per share as at the end of the corresponding period of the previous year 2022.

Item Three – Shareholders’ Equity: The total shareholders’ equity amounted to 261.55 million Saudi riyals as at the end of the current period of the year 2023 compared to 303.25 million Saudi riyals as at the end of the same period of the previous year, with a decrease of 41.71 million Saudi riyals ( 13.8%.

Item Four – Accumulated Losses: The accumulated losses amounted to 54.02 million Saudi riyals as at the end of the current period of the year 2023, which represents 17.1% of the group’s subscribed capital, with a value of 315 million Saudi riyals.

The company drew attention to Note No. 2 on the accompanying condensed consolidated interim financial statements, which indicates that the group has incurred a net loss of SAR 29.4 million for the six-month period ending on June 30, 2023, which resulted in accumulated losses of SAR 54,015 million. As at June 30, 2023. In addition, the Group’s current liabilities exceeded its current assets by SAR 252.236 million as on that date. The group relies mainly on the successful implementation of the group’s business plans to generate cash flows and the ability to continue to renew the current banking facilities upon expiration or if there is a failure to fulfill any of the bank commitments that enable it to fulfill its obligations when they fall due and maintain the continuity of its operations without curtailing substantial. These circumstances, together with other matters further described in Note 2, indicate the existence of a material uncertainty that may cast significant doubts about the Group’s ability to continue in business.