‎“Catering” profits increased to SR64 million during Q2, by 46%‎

The net profit after zakat and tax for the Saudi Airlines Catering Company increased to 64 million riyals during the second quarter, compared to 44 million riyals in the same quarter of last year, by 46%. This came after today’s announcement of the preliminary financial results for the period ending on June 30, 2023 AD.

The operational profit amounted to 68 million riyals in the second quarter, compared to 56 million riyals in the same quarter of last year, with a growth of 23%.

As for gross profit, it amounted to 125 million riyals in the second quarter, compared to 113 million riyals in the same quarter of last year, an increase of 11%.

The net profit after zakat and tax during the 6-month period amounted to 121 million riyals, compared to 79 million riyals in the same period last year, an increase of 53%.

Earnings per share in the current period amounted to 1.47 riyals, compared to 0.96 riyals in the same period last year.

Net profit after zakat and tax for the second quarter of the year 2023 AD amounted to 63.7 million Saudi riyals, compared to net profit after zakat and tax amounting to 43.5 million riyals for the same period of the previous year, due to improved sales, specifically sales of commercial flights, utility services and railways.

The increase in the number of flights and the growth in commercial operations other than airlines from the catering sectors led to a direct impact on the company’s operations, which led to an increase in revenues by 20.2% (an amount of 83.7 million Saudi riyals)

Net profit after zakat and tax increased by 11.6% to reach 63.7 million riyals from 57.1 million Saudi riyals, and revenues decreased in the second quarter by 4.7% to 497.1 million Saudi riyals from 521.6 million Saudi riyals for the first quarter of 2023.

The reason for the decrease in revenue is due to the Dakar Rally project, which was completed in the first quarter of 2023. Whereas, the increase in the profits of the second quarter of 2023 AD compared to the first quarter of 2023 AD is mainly due to the reversal of the provision for impairment in the value of trade receivables and a decrease in general and administrative expenses.

The company said that the main reason for the increase in net profit amounting to 120.9 million Saudi riyals compared to net profit in the previous year of 78.8 million Saudi riyals is due to the improvement in sales as a result of the increase in operating flights in addition to the increase in commercial operations other than airlines.