Alsaif Gallery profit drops 38% to SAR 31.2M in Q1 2024

AlSaif Stores for Development and Investment Co. (Alsaif Gallery) reported a net profit decline of 38% to SAR 31.2 million in the first quarter of 2024, compared to SAR 50.6 million in the year-earlier period.

The company cited higher selling and marketing expenses, along with lower other income.

It also reported a year-on-year (YoY) increase in financing costs, the right-of-use depreciation expenses and financial lease interest due to opening more branches.

Alsaif Gallery also recorded a relative YoY hike in the cost of goods sold due to higher global shipping prices during the first quarter of this year. The company did not pass on the rise in costs to customers in order to maintain prices and boost its market share.

Meanwhile, sales jumped 18% on an annual basis in Q1 2024, backed by higher seasonal sales due to the onset of the holy month of Ramadan and new branch openings.

Compared to Q4 2023, the company’s net profit leapt 82.7% from SAR 17.09 million, as sales increased 40% on a sequential basis due to better seasonal sales.

Total shareholders’ equity, no minority interest, grew to SAR 433.7 million as of March 31, 2024, from SAR 426.65 million a year earlier.

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