Arabian Centres profit slips 34% to SAR 359.7 mln in 9M FY2020/21

Arabian Centres Co. (ACC) reported a net profit after Zakat and tax of SAR 359.7 million for the first nine months ended Dec. 31, 2020, down by 34%, as compared to SAR 545.8 million in the same period in 2019.

The company attributed the profit decline to 16.5% drop in revenues, driven primarily by the restriction of activity at shopping centers in Q1 FY2020/21 as a result of COVID-19 and government efforts to contain the spread.

Revenues were further impacted by the extension of special, non-recurring discounts to help address the impact of COVID-19 on ACC’s tenants.

The company further cited lower gross profit; higher other income, expenses for advertisement and promotion, and interest expense on lease liabilities; and 87.4% rise in impairment loss on accounts receivable, for the profit drop.

In Q4 2020/21, net profit after Zakat and tax decreased by 14% year-on-year (YoY) to SAR 95.6 million on 15.8% decline in revenues. Lower gross profit and finance cost, and higher general and administrative expenses also weighed on the fourth-quarter results.

On a sequential basis, net profit decreased by 13.9%.