Fawaz Abdulaziz Al Hokair & Co. Al Hokair Co. achieved a profitability shift of 20.9 million riyals during the second quarter of the fiscal year 2021/22, compared to a loss of 98.2 million riyals in the quarter. The same as from the previous year.
According to Arabia Net, on a quarterly basis, the company's profits decreased in the three months ending in September 2021 by 54.26%, compared to profits of 45.7 million riyals in the previous quarter. him.
The company said in a statement to Saudi Arabia's Tadawul, today, Thursday, that the shift to profitability is due to a 15% revenue growth in the second quarter, equivalent to 175.7 million riyals. To reach 1.36 billion riyals, compared to the same quarter of the previous year.
The company stated that revenue growth is driven by a sustainable consumption recovery both domestically and internationally.
Although the annual increase in revenue has been strong, the company's operations have been facing continued restrictions on the numbers of visitors and visitors to shopping centers and food and beverage outlets related to containing The spread of the COVID-19 virus.
The company's sales increased during the first half of the current fiscal year by 75% to 3.06 billion riyals, compared to 1.75 billion riyals in the comparable period last year.
The company's accumulated losses recorded 969.2 million riyals at the end of last September, representing 46.2% of the capital of 2.1 billion riyals.
The company said that the board of directors agreed to submit a recommendation to the extraordinary general assembly to reduce the company's capital and then increase the capital by issuing priority rights shares, in order to restore Restructuring the capital, strengthening the company's financial position, and amortizing accumulated losses.
The board of directors proposed reducing the capital from 2.1 billion riyals to 1.130 billion riyals, a decrease of 46.2%.
And it stated that 96.92 million shares will be cancelled, bringing the number of the company's shares to 113 million shares, from 210 million shares before the reduction.
The company's board of directors also recommended to the extraordinary general assembly, to increase the capital after the completion of the capital reduction process, by offering rights shares worth one billion riyals.
