Fawaz Alhokair turns to loss of SAR 761.9 mln in 9M FY20/21

Fawaz Abdulaziz Alhokair Co. turned to a net loss after Zakat and tax of SAR 761.9 million in the nine-month period ending Dec. 31, 2020, compared to a net profit of SAR 234.3 million in the year earlier.

The losses were attributed to a 27.2% decrease in revenue driven primarily by the temporary closure of the company’s retail units for a part of the period due to the COVID-19 pandemic.

In addition, the company booked a one-off impairment of SAR 18.5 million related to certain doubtful assets, an increase of 10.8% in depreciation and amortization, as well as a 47.7% increase in Zakat and income tax expense.

The company reported a net loss after Zakat and tax of SAR 128.1 million in Q3, compared to a net profit after Zakat and tax of SAR 36.1 million, on the back of higher selling, general and administrative (SG&A) expenses, and depreciation and amortization costs, despite revenue growth.

On a quarterly basis, Alhokair losses narrowed by 30.4%, as revenue surged by 13.8%.