SASCO net profit declines to SAR 8.1 mln in Q1 2020

Saudi Automotive Services Co. (SASCO) reported a net profit after Zakat and tax of SAR 8.1 million for the first quarter of 2020, down 9% compared to a net profit of SAR 8.9 million a year earlier.

The decline in profit was attributed to higher revenue in Q1 2019 driven by income on the compensation received by the company under the legal claim of Hafar Al-Batin’s land plot.

In addition, lower profit was attributed to higher financing costs and general and administrative expenses and lower investment income, despite the 14.30% increase in sales.

On a sequential basis, the first quarter net profit after Zakat and tax declined 91.4% when compared to Q4 2019, due to 5.97% decline in sales well as inclusion of the retroactive profit margin of fuel in the last quarter which impacted its cost of sales and other revenue and increased its Zakat expense.

Additionally, the previous quarter included dividend income from investments, despite lower sales cost, general and administrative expenses and financing costs.