Fawaz Alhokair swings to net profit of SAR 69 mln in H1 2021/22

Fawaz Abdulaziz Alhokair Co. swung to a net profit of SAR 69 million for the six-month period ended Sept. 30, 2021, against a net loss of SAR 624.2 million in the year-earlier period.

In the second quarter, the company turned to a net profit of SAR 22 million versus a net loss of SAR 98.79 million a year earlier, driven by a 14.8% YoY increase in the second-quarter revenue to SAR 1.361 billion. 

The fashion retailer posted a rise of 74.9% year-on-year (YoY), or SAR 1.311.4 billion, in revenue to SAR 3.062 billion for H1 FY2022, as the severe impact of the COVID-19 containment measures witnessed a year earlier were gradually eased and trade rebounded.

Gross profit increased to SAR 564.9 million for the current period versus a gross loss of SAR 190.9 million in the first half of FY2021.

Moreover, selling, general and administrative expenses (SG&A) increased by 30% YoY to SAR 259.7 million in the current period. Depreciation and amortization decreased by 32.8% YoY to SAR 103.5 million, with net finance costs declining 25.6% YoY to SAR 142.8 million.

In the second quarter, the company turned to a net profit after Zakat and tax of SAR 20.9 million versus a net loss of SAR 98.79 million a year earlier, driven by a 14.8% YoY increase in the second-quarter revenue to SAR 1.361 billion.

On a sequential basis, Q2 net profit more than halved from SAR 45.7 million, as revenue saw a drop of 20% to SAR 339.4 million, compared to the second quarter of fiscal year 2021. Zakat and income tax expenses increased by SAR 14.4 million to SAR 24.7 million.

Shareholders’ equity, after minority interest, fell by 41.3% to SAR 532.2 million in the six-month period, from SAR 907.7 million a year earlier.

Accumulated losses stood at SAR 969.2 million in the six-month period, representing 46.2% of the company’s total capital.

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