Burgerizzr profit soars to SAR 12.3M in 2023; Q4 at SAR 5M

Shatirah House Restaurant Co. (Burgerizzr) reported a net profit of SAR 12.3 million in 2023, an over four-fold increase from SAR 2.7 million a year earlier.

The annual profit surge was propelled by a year-on-year (YoY) rise of nearly 12.2% in revenue, thanks to an increase in branch sales and the number of customers. Burgerizzr had 102 branches at the end of 2023, compared to 105 in 2022. Two branches were opened, while five branches were closed.

Gross profit jumped 24% YoY on higher average sales per branch, pushing gross profit margin up from 27.2% in 2022 to 30.1% in 2023.

Furthermore, administrative expenses decreased 4.3% YoY, primarily due to lower workforce and the company’s effort to utilize the current resources more efficiently. The restaurant chain also reported a decline in the cost of labor force and food inputs, as well as an increase of SAR 203,000 in other income.

On the other hand, selling expenses increased by 20.3% YoY, mainly due to higher delivery costs. Finance charges rose SAR 30,000, with losses arising from writing-off property and equipment widening by 73.9% YoY. Burgerizzr recorded higher amortization, lease, and maintenance costs.

In Q4 2023, the company swung to a net profit of SAR 5 million against a net loss of SAR 1.19 million a year earlier.

The Q4 net profit rose 22.4% from SAR 4.06 million in the previous quarter.

Total shareholders’ equity, no minority interest, rose to SAR 68.86 billion as of Dec. 31, 2023, from SAR 56.93 billion a year earlier.

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