The financial statements of Fawaz Abdulaziz Alhokair & Partners showed that the company had shifted to losses in the first quarter ending on 30 June 2020, compared to profits for the same period last year.
According to the company's results for the Saudi market (Tadawul), losses for the period amounted to 535.6 million riyals, compared to profits of 101.31 million riyals made by the company during the first quarter of 2019. < / p>
The company said that the negative shift in results during the comparison periods is due to a decrease in revenues by 67.4%, equivalent to 1.168 billion riyals, and this is due to the temporary closure of most of the affiliated stores on Background The implications of the spread of the Coronavirus in compliance with government directives in the Kingdom to protect the health of citizens and residents and contain the spread of the virus.
The company also attributed the negative shift in results to recording a total loss of 242.7 million riyals in the first quarter against a total profit of 655.9 million riyals during the same period of the previous year. This reflects the impact of declining revenues due to the closure of subsidiary shops due to the repercussions of the Corona pandemic.
The gross profit was also affected by recording depreciation expenditures of 152.4 million riyals during the first quarter of the current fiscal year under the application of the International Financial Reporting Standard (IFRS 16), in addition to Recording exceptional obsolete inventory allocations of 106 million riyals during the same period.
The company indicated that exceptional impairment costs amounted to 63.2 million riyals were recorded during the first quarter of the current fiscal year, related to some investments related to foreign markets and fixed assets.
(Amazon Fun Knowledge)
