Saudi Ground Services turns to profit of SAR 40 mln in Q1 2023

Saudi Ground Services Co. (SGS) reported a net profit of SAR 40 million in Q1 2023, against a loss of SAR 19 million a year earlier.

The profit was driven by higher revenue, which rose by 33% or SAR 139 million, driven by the gradual increase in the air traffic.

The company also recorded a 130% increase in gross profit by SAR 57 million, despite an increase in cost of revenues by 22%, or SAR 82 million, compared to the same quarter of the previous year.

The share of profit from equity accounted investments increased by SAR 7 million and the Zakat expense decreased by SAR 6 million compared to the same quarter of the previous year. In addition, income from term deposits increased by SAR 11 million, which had a positive impact on the company's results.

This is despite recording a gain from the disposal of equity shares amounting to SAR 24 million in the same quarter of the previous year.

Sequentially, the company turned to profit in Q1 2023 against a loss of SAR 107.77 million in Q4 2022.

Shareholders’ equity, no minority interest, stood at SAR 2.14 billion as of March 31, 2023, from SAR 2.24 billion a year earlier.

View more financial results