Arabian Centers' profits fell by 46.6% during the second quarter of this year, on an annual basis.
According to Arabiya Net, the company's financial data showed that the net profit after zakat and tax amounted to 111.1 million riyals during the second quarter of this year, compared to 208.2 million riyals net profit In the corresponding quarter of 2019.
and by comparison on a quarterly basis, the net profit of Arab centers decreased by 27.4% compared to a net profit of 153.1 million riyals during the first quarter of 2019.
The company recorded a net profit after zakat and tax amounting to 264 million riyals with the end of the first nine months in 2020, compared to recording profits of 435 million riyals during the same period of the previous year , Down 39.2%.
The company's fiscal year begins in early April and ends at the end of March of each year.
The company attributed the decrease in net profit in the second quarter on an annual basis, to a decrease in revenues by 16.9% during the second quarter of the fiscal year 2021 AD, equivalent to 94.3 million riyals compared to In the second quarter of the fiscal year 2020, mainly due to the company extending the granting of non-recurring discounts in order to support tenants in facing the negative impact of the repercussions of the spread of the new Corona virus.
The company expected that the total discounts provided to tenants as a result of this crisis would reach 535.9 million riyals, which will be recorded over the period of the lease contracts, noting that one-off discounts of 68.7 were recorded. One million riyals during the second quarter of the fiscal year 2021 AD, and 62.7 million riyals during the first quarter of the fiscal year 2021.
and since the last quarter of the fiscal year 2020, the total value of the discounts granted to tenants related to addressing the crisis of the spread of the new Corona virus has reached 151.7 million riyals, which is reflected in the net rental income .
The decrease in gross profit by 30.5% during the second quarter is due to the effect of lower total revenues. The gross profit was also affected by the increase in consumption expenditures during the current quarter, as the consumption costs of investment properties increased to 75.2 million riyals during the second quarter of the fiscal year 2021 AD compared to 67.2 million riyals during the second quarter of the fiscal year 2020 AD.
This reflects the launch of the Yoo Walk centers in Riyadh and the Nakheel Mall in Dammam at the end of the second quarter of the fiscal year 2020 AD. In parallel, depreciation expenses for the right to use assets increased to 53.3 million riyals during the ...
