Tihama’s losses increased to SR6.8 million riyals during Q2 by ‎‎100%‎

Tihama Advertising and Public Relations Company recorded losses during the second quarter after zakat and tax of 6.8 million riyals, compared to a loss of 3.4 million riyals in the same quarter of last year, at a rate of 100%. This came after today’s announcement of the preliminary financial results for the period ending on September 30 2023 (9 months).

Operating profit in the second quarter amounted to 8.5 million riyals, compared to 10.7 million riyals in the same quarter of the previous year, a decrease of 20.5%.

The net loss after zakat and tax during the quarter amounted to 18.1 million riyals, compared to 11.7 riyals in the same period of the previous year, a growth of 54.7%.

The loss per share in the current period reached 0.45 riyals, compared to 2.3 riyals in the same period last year.

According to the company, the reason for the increase in losses during the current quarter compared to the same quarter of the previous year is mainly due to:

– A decrease in the gross profit from continuing operations by approximately 2.2 million Saudi riyals, mainly due to a decrease in the gross profit of the advertising sector by approximately 1 million Saudi riyals as a result of the decrease in sector revenues and the termination of the contract for leasing advertising sites and the production sector by approximately 0.9 million Saudi riyal.

In addition, it recorded an allocation for slow-moving goods inventory during the current quarter, amounting to approximately 1.5 million Saudi riyals.

On the other hand, the total profit of the retail sector increased by approximately 0.9 million riyals after increasing the number of the sector’s branches

– An increase in general and selling expenses by approximately 3.9 million Saudi riyals, mainly due to recording losses and provisions for lawsuits and claims of approximately 2.5 million Saudi riyals during the current quarter.

– Financial reorganization expenses were recorded at approximately 0.5 million Saudi riyals

– Recording impairment losses in the value of trade receivables and other receivable balances amounting to approximately 0.4 million Saudi riyals.

-The Zakat allocation increased by approximately 3.8 million Saudi riyals

This increase was partially offset by:

– An increase in the group’s share of the results of the operations of associate companies by approximately 6.3 million Saudi riyals.

– Other income increased by approximately 1.1 million Saudi riyals, mainly due to recording profits on deposits of approximately 0.7 million Saudi riyals and 0.5 million Saudi riyals for unclaimed credit balances.

The same quarter of the previous year also included losses from discontinued operations (Aventis Global Trading Company – a subsidiary) amounting to approximately 0.6 million Saudi riyals.

The reason for the decrease in losses during the current quarter compared to the previous quarter of the year is mainly due to:

– An increase in gross profit by approximately 5.4 million Saudi riyals, despite recording an allowance for slow-moving inventory of approximately 1.5 million Saudi riyals, but the total profit of the distribution sector (during the supply season for educational institutions) amounted to approximately 6.2 million riyals. Saudi…

-Financial reorganization expenses decreased by approximately 1.1 million Saudi riyals.

– Other income increased by approximately 1.1 million Saudi riyals, mainly due to recording profits on deposits of approximately 0.7 million Saudi riyals and 0.5 million Saudi riyals for unclaimed credit balances.

– The group’s share of the results of the associate companies’ operations increased by approximately 2.5 million Saudi riyals.

This decrease was partially offset by:

– Zakat expense increased by approximately 2.5 million Saudi riyals

– The previous year’s profit included a profit from discontinuous operations of approximately 1.1 million Saudi riyals, and represented the group’s profit from the Integrated Production Company (a subsidiary) selling its share in Qatrab Media Production Company (an associated company).

– Recording impairment losses in the value of trade receivables and other receivable balances amounting to approximately 0.4 million Saudi riyals during the current quarter.

The reason for the increase in losses during the current period compared to the same period of the previous year is mainly due to:

– A decrease in the gross profit from continuing operations by approximately 3.8 million Saudi riyals, mainly due to a decrease in the gross profit of the advertising sector by approximately 2 million Saudi riyals as a result of the decrease in sector revenues and the termination of the advertising site rental contract, and the production sector by approximately 0.9 million riyals. Saudi, and a decrease in the total profit of the distribution sector by approximately 1.4 million riyals

In addition to recording an allocation for inventory of slow-moving goods during the current period of approximately 1.5 million Saudi riyals.

On the other hand, the total profit of the retail sector increased by approximately 0.6 million riyals after increasing the number of branches

-An increase in general and selling expenses by approximately 6.5 million Saudi riyals, mainly due to:

Recording fees for lawsuits and claims in the amount of 2 million Saudi riyals, in addition to expenses for settling labor contract obligations amounting to approximately 2.2 million Saudi riyals, and recording losses and allocations for lawsuits and claims in the amount of approximately 2.5 million Saudi riyals during the current period. .

As was done during the current period:

– Financial reorganization expenses were recorded at approximately 2.1 million Saudi riyals

– Recording impairment losses in the value of trade receivables and other receivable balances amounting to approximately 0.4 million Saudi riyals.

-The Zakat allocation increased by approximately 4.8 million Saudi riyals

This increase was partially offset by:

– An increase in the group’s share of the results of the operations of associate companies by approximately 8 million Saudi riyals.

– Other income increased by approximately 1.2 million Saudi riyals, mainly due to recording profits on deposits of approximately 0.7 million Saudi riyals and 0.5 million Saudi riyals for unclaimed credit balances.

– During the period, a profit from discontinued operations of approximately 1.1 million Saudi riyals was recorded, representing the group’s profit from the Integrated Production Company (a subsidiary) selling its share in Qatrab Media Production Company (an associated company).