Alhokair Group widens 9M 2021 net losses to SAR 123.9 mln

Abdulmohsen Alhokair Group for Tourism and Development deepened its net loss after Zakat and tax to SAR 123.9 million in the first nine months of 2021, from SAR 105.2 million in the prior-year period.

The increased loss was attributed to a decline in operational losses, in addition to the net impact of non-recurring operations. In the nine-month period ended Sept. 30, 2020, the company recognized SAR 77 million gain, according to the requirements of IFRS 16, on revising a lease agreement of some hotel properties to be a percentage of revenues instead of fixed rent amount.

Some sites were closed and the company disposed those assets. Moreover, according to IFRS 16, a profit of SAR 42 million was recorded during the current period, on exiting certain sites due to their low financial feasibility.

The company also reversed book provisions that were higher than the group’s expected obligations at a total value of SAR 1.7 million during the current period

In Q3 2021, the company turned to a net profit after Zakat and tax of SAR 6.2 million, compared to a net loss of SAR 109.3 million a year earlier, thanks to a 68.7% rise in revenue to SAR 191 million.

In Q2 2021, Alhokair Group incurred a net loss of SAR 69.9 million.

Shareholders’ equity, after minority interest, increased by 27.5% to SAR 426.65 million as of Sept. 30, 2021, from SAR 334.6 million a year earlier.

Accumulated losses reached SAR 224.6 million as of Sept. 30, 2021, representing 34.6% of total capital.

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