Thob Al Aseel maintains robust profitability in Q1 2021, records higher credit provision of SAR 4.7 mln

Ahmed Alsultan, CEO of Thob Al Aseel Co.

Thob Al Aseel Co. maintained robust profitability during the first quarter of the year, despite market challenges and the extraordinary measures taken to contain the COVID-19 pandemic, chief executive officer (CEO) Ahmed Alsultan told Argaam in a telephone interview.

“The provision for doubtful debts saw an increase of SAR 4.7 million in the first quarter, compared to Q1 2020. The provisions were allocated in line with the international standards,” Alsultan explained.

Adjusting for the credit loss provision, Thob Al Aseel’s first-quarter earnings would have grown by 6% year-on-year.

Moreover, profit margins were hit by the sale of special relatively low-profit products and the launch of promotions for customers.

In the second quarter of 2021, Thob Al Aseel is looking to restoring the pre-COVID level sales, benefiting from the strong customer turnout for its products during the holy month of Ramadan, Alsultan concluded.

The company’s Q1 2021 net profit after Zakat and tax dropped 20% to SAR 14 million from SAR 17.5 million in the year-ago period, Argaam reported.