Fawaz Abdulaziz Al Hokair & Partners Company (Al Hokair) achieved a profitability shift in the first quarter, with profits after zakat and tax amounting to about 45.7 million riyals at the end of the first quarter of the company’s fiscal year ending on June 30, 2021, compared to losses of about 535.6 million riyals in the same quarter of the previous fiscal year.
According to Arabiya Net, the company had made losses of about 348.3 million riyals in the fourth quarter of the previous fiscal year.
Al-Hokair said in a statement on Saudi Arabia's Tadawul, today, Thursday, that its transformation to profitability in the first quarter of the company's fiscal year, on an annual basis, is due to several factors, including an increase Revenues increased by 201%, equivalent to about 1.136 billion riyals.
The company added that despite the large annual increase in revenues, it should be noted that the company's lost revenues in the first quarter of the fiscal year 2021 amounted to 1.2 billion riyals. Due to market movement restrictions due to the COVID-19 pandemic.
The increase is due to the return of pre-pandemic operations after the lifting of precautionary restrictions, despite the continued precautionary restrictions imposed on the carrying capacity of commercial centers.
The total profit amounted to about 332.6 million riyals in the first quarter of the current fiscal year, compared to a total loss of 242.7 million riyals in the first quarter of the previous fiscal year.
Al-Hokair expected a return to profit after the pandemic with the reopening of stores and the return of consumer spending to normal.
Al-Hokair stated that its accumulated losses amounted to about 990.9 million riyals at the end of the first quarter of the company's fiscal year, equivalent to 47.2% of the capital of about 2.1 billion riyals.
