Saudi Catering incurs SAR 128.2 mln net loss in H1 2020

Saudi Airlines Catering Co. (SACC) reported a net loss after Zakat and tax of SAR 128.2 million for H1 2020, against a net profit of SAR 220.6 million a year earlier.

The company attributed these losses to a decrease in sales of 47% year-on-year (YoY), due to disruption of business activities, though the first two months of Q1 had seen normal business activity levels. Account receivable provision increased by SAR 33.3 million, while the fixed cost remained the same.

In Q2 2020, the company reported a net loss after Zakat and tax of SAR 143.8 million for Q2 2020, against a net profit of SAR 117.1 million a year earlier. Catering was hit by the disruption of the business activities due to pandemic outbreak, which resulted in a 79.2% drop in sales; the fixed cost remained the same, but the accounts receivable provision increased by SAR 18.1 million.

The company turned to losses from a profit of SAR 15.6 million in Q1 2020, on a decline in sales by 75.0%, due to disruption of business activities whereby Q2 witnessed minimal activities under in-flight division. The accounts receivable provision increased by SAR 6.4 million, while the fixed cost remained the same.