SGS H1 2024 profit climbs 66% to SAR 149.6M; Q2 at SAR 78.4M

Saudi Ground Services Co. (SGS) reported a net profit rise of 66% to SAR 149.6 million in the first half of 2024, from SAR 90 million in the prior year period.

The first-half net earnings were bolstered by a 12.5% rise year-on-year (YoY) in revenue, on growth in domestic and international flights in addition to higher number of Hajj and Umrah pilgrims.

They were also driven by a SAR 17.3 million increase in other income, compared to SAR 14.9 million in the same period of 2023. Additionally, SGS posted a SAR 12.8 million decline in financing costs, which improved results.

These positive factors were partially offset by SAR 25 million increase in the impairment loss on trade and other receivables compared to the same period previous year.

In Q2 2024, the company’s net profit jumped 57% to SAR 78.4 million, from SAR 49.9 million in Q2 2023, thanks to a 9.6% YoY rise in revenue.

On the other hand, the cost of revenue increased by 3.5% YoY triggered by the company's productivity enhancement and expense rationalization initiatives, which resulted in a 40.9% rise YoY in gross profit.

SGS bottom line advanced 10.2% from SAR 71.1 million in Q1 2024.

Shareholders’ equity, no minority interest, reached SAR 2.48 billion by June 30, 2024, compared to SAR 2.19 billion in the prior-year period.

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