Alhokair Group turns to SAR 4.2M profit in Q1 2024

Abdulmohsen Alhokair Group for Tourism and Development (Alhokair Group) reported a net profit of SAR 4.2 million in Q1 2024, against a net loss of SAR 34.3 million in the prior-year period.

The positive results were buoyed by higher revenue from the entertainment segment during the period preceding the holy month of Ramadan. This, in turn, contributed to reducing the negative impact of seasonality, which arises from the coincidence of 20 days for Ramadan during the current quarter compared to 10 days only in Q1 2023.

Occupancy rates and the average room rate (ARR) for the group’s hotels also increased in the three-month period, driving the hotel segment’s revenue to SAR 91.6 million.

Gross profit climbed 77% year-on-year (YoY) to SAR 44.6 million in Q1 2024. Gross profit margin also expanded on lower operating costs due to Alhokair Group’s continuous efforts to improve operating efficiency, reduce operating expenses (OpEx), and re-estimate the useful life of some categories of fixed assets.

Alhokair Group recorded operating profits of SAR 5.9 million in Q1 2024, against operating losses of SAR 17.2 million in the year-earlier period.

On the other hand, revenue decreased by 3.49% YoY to SAR 158.11 million.

The group turned profitable in Q1 2024 from a loss of SAR 67.3 million in Q4 2023 as the hotel segment’s revenue grew 9.3% quarter-on-quarter (QoQ). It posted operating profits of SAR 5.9 million, against operating losses of SAR 33.52 million in the previous quarter.

Total shareholders’ equity, no minority interest, declined to SAR 207.3 million as of March 31, 2024, from SAR 255.38 billion a year earlier.

The group’s accumulated losses reached SAR 109.94 million, representing 34.9% of capital.

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