Fitaihi swings to SAR 30 mln profit in 2020

Fitaihi Holding Group turned to a net profit after Zakat and tax of SAR 30 million for 2020, compared to a net loss of SAR 9.5 million a year earlier.

The company attributed the earnings to SAR 32.1 million profits achieved from selling part of its stake in the share capital of its associate, Al-Jouf Agricultural Development Co., and lower selling and administrative expenses by SAR 6.2 million.

Fitaihi also cited SAR 16 million profits from the reversed part of the impairment losses incurred in the value of the investment from Al-Jouf Agricultural Development Co.

The loss was partially offset by a 32.6% decline in sales due to the closure of commercial centers from mid-March until the end of April 2020 on COVID-19, higher Zakat expenditure by 153.7%, lower share of business from associates by 51.4%, and higher net loss from discontinued operations by 308%.

The company also swung to a net profit after Zakat and tax of SAR 11.2 million in Q4 2020 from a net loss of SAR 24.7 million in the same period in 2019.