The net profit of Thob Al Aseel Company decreased by 34.07% to reach 34.49 million riyals after zakat and tax during the second quarter of 2021, compared to 52.32 million riyals in the same period of 2020.

According to Arabiya Net, the company added in a statement that the net profit for the second quarter of this year rose by 146.88% compared to the first quarter of this year, which amounted to 13.97 million riyals.

The company explained that the reason for the annual decrease in net income for the second quarter is mainly due to the decrease in sales by 13.30% and this is due to the company signing a contract to supply medical supplies during the same quarter. from the previous year.

The company also noted the impact of a relatively low profit margin as a result of increased sales of low-profit products.

The reasons for the decline in profits also included an increase in selling and distribution expenses during the current quarter, due to the launch of a promotional campaign to coincide with the month of Ramadan.

The company reported that during the same quarter of the previous year, it benefited from government initiatives to mitigate the effects of the Covid-19 pandemic.

During the first half of 2021, net profit after zakat and tax decreased by 30.6% to 48.46 million riyals, from 69.6 million riyals in the same period of 2020.

Capital increase

In a separate statement, Thob Al-Aseel stated that the board of directors recommended increasing the company's capital by granting shares at an increase of 33.33%, bringing the capital to 400 million riyals from 300 million currently.

She explained that the increase comes to support the company's capital to match its business volume and future aspirations, and to maintain financial solvency.

According to the statement, one share will be given for every 3 shares owned, and the increase will be through the capitalization of 100 million riyals of retained earnings and other reserves.

In a related context, the Board of Directors recommended the distribution of cash dividends to shareholders for the first half of 2021 with a total value of 22.5 million riyals, due to about 30 million shares, at 0.75 riyals per share. .

It noted that the entitlement to cash dividends will be to shareholders owning shares at the end of the trading session on September 19, 2021.