Alsaif Gallery profit falls 60% to SAR 26.4M in H1 2024; Q2 loss at SAR 4.9M

AlSaif Stores for Development and Investment Co. (Alsaif Gallery) reported a net profit fall of 60% to SAR 26.4 million in the first half of 2024, from SAR 65.8 million in the year-earlier period.

The profit decline was attributed to the higher cost of goods due to a rise in global shipping prices by more than 82% year-on-year (YoY). The company did not pass the increased costs on to customers to maintain prices and increase market share. Additionally, local goods transportation expenses increased by over 10% YoY

The company also closed two branches, which led to a profit decrease due to the write-off and liquidation of the inventory and assets of these branches, as a result of relocating to alternative branches

The company also cited an increase in selling and marketing expenses as well as customer acquisition costs This is in addition to a decrease in other revenues and an increase in financing interest expenses due to higher bank facility amounts

However, AlSaif Stores posted increased sales of seasonal items specific to the Ramadan season, as well as higher number of branches within the Kingdom and the GCC countries, which positively impacted total sales for the period.

Sales through e-commerce platforms and project sales also grew.

In Q2 2024, the company incurred a loss of SAR 4.9 million, against earnings of SAR.

15.28 million a year before, mainly due to the closure of two branches in the Eastern and Western regions due to their obsolescence.

Based on a quarter-on-quarter basis, the company turned to a loss from SAR 31.2 million in Q1 2024.

Shareholders’ equity, no minority interest, stood at SAR 429 million by the end of Q2 2024, compared to SAR 442 million in the year-earlier period.

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