GACO net profit slumps 89% to SAR 1.7 mln in 9M 2020

Al Gassim Investment Holding Co. (GACO) reported a net profit after Zakat and tax of SAR 1.7 million for the first nine months of 2020, an 89% slide from SAR 15.5 million in the year-earlier period.

The lower bottom line was attributed to the profit recorded from a change in investment fair values and gains from selling assets at fair value in the period ending September 2019. The company recorded zero profit from the same items in the current period.

In addition, GACO reported a decline in impairment of trade accounts receivables and an increase in Zakat provision for the current period.

The company swung to a net loss after Zakat and tax of SAR 39,000 in Q3 2020, compared to a net profit SAR 4.7 million in Q3 2019. GACO reported nil profit from the sale of financial assets in Q3 2020, as compared to the year-earlier period. It also reported higher Zakat provision and a decline in impairment of trade accounts receivables.

On a quarterly basis, the company turned to losses from a net profit of SAR 1 million in Q2 2020, hit by an increase in the third-quarter Zakat provision.