Alsaif Gallery profit down 24% to SAR 98.2M in 2023; Q4 at SAR 17.1M

AlSaif Stores for Development and Investment Co. (Alsaif Gallery) reported a net profit of SAR 98.2 million for the year ended Dec. 31, 2023, down 24% compared to SAR 129.8 million in the year-earlier period.

The profit decline is attributed to a 2.61% year-on-year (YoY) decline in sales despite the improvement in the profit margins ratio by 2.02%. Profit was also hit by an increase in general and administrative expenses, in addition to the YoY rise in marketing expenses due to marketing of new branches in Kuwait and the UAE.

Financial lease costs edged higher due to the company's expansion and opening of new branches in Saudi Arabia, UAE and Kuwait.

Meanwhile, the company did not pass the increase in costs to the customers to maintain prices and market share.

Additionally, net profit for 2022 included the sale of a property owned by the company for a value of SAR 35 million, which resulted in a net non-recurring capital gain of SAR 16.6 million during the fourth quarter of the previous year.

Q4 2023 net profit dropped 39% YoY to SAR 17.1 million.

Compared with Q3 2023, net earnings went up 11.9% from SAR 15.27 million.

Total shareholders’ equity, no minority interest, decreased to SAR 402.55 million by the end of the 12-month period from SAR 411.10 million a year earlier

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