Kingdom Holding reports profit of SAR 1.01B in 2023; Q4 at SAR 157.1M

Kingdom Holding Co. (KHC) posted a net profit of SAR 1.01 billion for 2023, compared with SAR 6.95 billion a year earlier.

The profit decline was primarily due to one-off gain from the sale of 50% of the company's stake in Four Seasons Holdings (partial sale of its stake in equity accounted investee) in 2022 and no such gain was recognized in 2023.

The company also cited an increase in financial charges, higher hotels and other operating costs, as well as an increase in general, administrative, and marketing expenses, in addition to a decrease in dividend income.

This was despite an increase in other gains, higher share of results from equity-accounted investees, increase in hotels and other operating revenues, and growth in gain on investments at FVTPL. This was in addition to a decrease in Zakat charges, an increase in reversal/impairment of financial assets, a decline in withholding and income tax, as well as higher finance income.

KHC reported a net profit of SAR 157.1 million for Q4 2023, down 37% from SAR 250.3 million a year earlier.

On a sequential basis, Q4 2023 net profit fell 59.8% from SAR 391.18 million.

Shareholders’ equity, after minority interest, increased to SAR 35.17 billion at the end of 2023, from SAR 30.72 billion a year earlier.

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