Kingdom Holding logs SAR 171.1 mln profit in Q1 2023

Kingdom Holding Co. (KHC) reported a 97.1% plunge in Q1 2023 net profit to SAR 171.1 million, from SAR 5.9 billion in the year-earlier period

KHC realized a gain from the partial sale of equity-accounted investee, Four Seasons Holding during the first quarter of 2022. Adjusting for this gain, the company would have recorded a rise in Q1 2023 net profit.

Meanwhile, financial charges rose along with an increase in hotels and other operating costs, decrease in income from gain on investments at FVTPL, and lower finance income and other gains. In addition, general, administrative and marketing expenses edged higher.

On the other hand, KHC reported an increase in dividend income, and lower Zakat expenses.

The three-month net profit also dropped 31.7% from SAR 250.3 million in Q4 2022. KHC’s share of results from equity-accounted investees declined. Further, revenue from hotels and other operating revenue declined. KHC also reported a decrease in finance income, higher finance charges, general, administrative and marketing expenses, as well as a rise in withholding and Income tax.

Shareholders’ equity, after minority interest, declined to SAR 32.28 billion as of March 31, 2023, from SAR 33.09 billion in the year-earlier period.

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