Kingdom Holding H1 2023 profit falls to SAR 465 mln; Q2 at SAR 294 mln

Kingdom Holding Co.’s (KHC) net profit dropped to SAR 465 million in the first half of 2023 from SAR 6.35 billion in the prior-year period.

This was due to the gain on the partial sale of an equity-accounted investee that was recorded in the same period of last year, along with an increase in financing costs (FCs) as well as hotels and other operating costs.

In addition, the company cited a decrease in gains on investments at FVTPL for the six-month period, as well as higher general, administrative, and marketing expenses, along with an uptick in withholding and income tax expenses.

This was despite a surge in the share of results from equity-accounted investees, higher dividend income as well as hotels and other operating revenues, amid lower Zakat expenses.

In Q2 2023, net profit dropped 31.2% year-on-year (YoY) to SAR 293.93 million. This was due to soaring FCs, lower dividend income on a quarterly basis, and a YoY hike in general, administrative and marketing expenses as well as Zakat expenses.

On a sequential basis, Q2 net profit leapt 71.8% from SAR 171.07 million.

Shareholders’ equity, after minority interest, stood at SAR 31.29 billion as of June 30, 2023, compared to SAR 32.59 billion a year earlier.

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