Alhokair Group turns to SAR 4.2 mln profit in H1 2020

Abdulmohsen Alhokair Group for Tourism and Development (Alhokair Group) turned to a net profit after Zakat and tax of SAR 4.2 million for the first half of 2020, compared to a net loss of SAR 31.4 million a year earlier.

Despite lower revenue in the current period, the group attributed the first-half profit to closure of a number of low-performing locations last year, including hotels, entertainment and commercial centers, which incurred operational losses.

The group reported lower expenses and direct costs, as it received a rental concession of SAR 45 million. Moreover, depreciation of right of use assets expenses saw a decline, along with lower salaries and benefit expenses. The company reversed Zakat provision of SAR 1 million, and recorded a decline in finance charges.

In Q2 2020, net profit after Zakat and tax more than tripled to SAR 2.1 million, compared to SAR 630,000 in Q2 2019.

The group reported lower expenses, direct costs, a decline depreciation of right of use assets expenses, along with lower salaries and benefit expenses. Alhokair Group recorded higher other income, lower finance charges, and a decline in selling, general and administrative expenses (SG&A).

When compared to the previous quarter, Alhokair Group posted a decrease of 2% in net profit, due to a drop in revenue, higher general and administration expenses. The company’s share in the net results of joint ventures decreased by SAR 5.8 million.