Fawaz Alhokair turns to SAR 85 mln profit in 9M 2021/22; Q3 earnings at SAR 17 mln

Fawaz Abdulaziz Alhokair Co. swung to a net profit after Zakat and tax of SAR 85 million for the nine-month period ended Dec. 31, 2021, against a net loss of SAR 753 million in the year-earlier period.

The fashion retailer posted higher revenue in 9M FY2021/22, as the severe impact of the COVID-19 containment measures witnessed a year earlier were gradually eased and trade rebounded.

Gross profit increased primarily due to the increase in revenue, recovery in trading margins, and the recognition of one-time inventory provisions in 9M FY2021/22.

Moreover, the company cited lower depreciation and amortization expenses and lower financing charges as reasons for reporting a net profit during the period.

In the third quarter, the company turned to a net profit after Zakat and tax of SAR 17 million versus a net loss of SAR 128.12 million a year earlier.

On a sequential basis, Q3 net profit fell 18.6% on higher selling, general and administrative expenses.

Shareholders’ equity, after minority interest, fell by 29.5% to SAR 550.13 million in the nine-month period, from SAR 780.8 million a year earlier.

Accumulated losses stood at SAR 952.34 million in the nine-month period, representing 45.3% of the company’s total capital.

View more financial results