‎“Al-Saif Gallery” profits increased slightly to 15.2 million riyals ‎during Q2, by 1%‎

The profits of Al-Saif Gallery for Development and Investment recorded a slight increase after zakat and tax in the second quarter, by 1.04%, to 15.2 million riyals, compared to 15.1 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.”

The operating profit amounted to 12.2 million riyals in the second quarter, compared to 17.7 million riyals in the same quarter of last year, a decline of 30.7%.

The net profit after zakat and tax during the 6-month period amounted to 65.8 million riyals, compared to 74.2 million riyals in the same period last year, a decrease of 11.3%.

The total shareholders’ equity “without minority rights” amounted to 442 million riyals in the current period, compared to 390.3 million riyals in the same period last year, a rate of 13.2%.

The loss per share amounted to 0.19 riyals in the current period, compared to 0.21 riyals in the same period last year.

The company’s profits increased by 1% compared to the same period of the previous year due to the following reasons:

An increase in total sales by 12.4%, supported by an increase in sales of the online store by 47.6%, in addition to the sales of new branches in Kuwait and the UAE. Whereas, the company’s expansion strategy aims to expand through the online store, in addition to expanding in the GCC countries, which began to be implemented during this year.

Achieving profits of 324,000 riyals from the revaluation of financial assets, and this increase in profits comes despite the following:

– An increase in general and administrative expenses, in addition to an increase in marketing expenses, compared to the same quarter of the previous year, due to the marketing of the new branches in Kuwait and the UAE.

The decrease in profits for the current quarter compared to the previous quarter is due to the coincidence of the first quarter with the Ramadan season, as the Ramadan season is by nature active in sales, due to the high demand for purchases of household utensils and small electrical appliances before the beginning of the Holy Ramadan.

The main reason for the decrease in profits for this period compared to the same period of the previous year is due to the period (6 months)

– A decrease in sales by 1.9% due to the end of the seasonal sales season, Ramadan, with the start of the blessed month of Ramadan on March 23, 2023 (before the salaries of March 2023 were dropped) compared to the same period last year.

High marketing expenses resulting from the opening of new branches in the UAE and Kuwait