Burgerizzr’s H1 2022 net profit down 54% to SAR 3 mln

Shatirah House Restaurant Co. (Burgerizzr) reported a net profit after Zakat and tax of SAR 3 million in the six months ended June 30, 2022, a decline of 54%, compared to SAR 6.5 million in the year-earlier period.

This came as selling expenses increased by SAR 5.2 million, or 43.77% year-on-year (YoY), while financing costs (FC) rose by SAR 529,200 during the six-month period.

The profit decline was also attributed to recording losses on disposal of property, plant and equipment of SAR 707,000 in H1 2022, along with increased raw material and labor costs – resulted from additional Saudisation requirements – as well as higher shipping and packing costs.  

This was despite a 13.33% YoY surge in revenues, driven by an uptick in the number of branches to 101 by the end of the six-month period, compared to 87 branches in the previous year. As many as 15 new branches were added and two others were replaced, while one more closed down. The number of customers remained unchanged, but the value of one invoice per client dropped significantly.

Administrative expenses decreased by SAR 1 million, or 9.64% YoY, as a result of focusing on improving support service activities.

Total shareholders’ equity, excluding minority interest, stood at SAR 58.008 million by the end of the six-month period, compared to SAR 53.966 million in the prior-year period. 

On June 30, 2022, the company’s shareholders approved a capital increase by SAR 10 million, to be financed from its retained earnings. 

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