The profits of Al Kathiri Holding Company decreased by 39.7%, with net profit reaching 9.5 million riyals during the year 2020, compared to 16 million riyals in 2019, despite the increase in revenues by 16.7 % To 104.4 million riyals.
According to Arabiya Net, the company said in a statement that the reason for the decrease in net profit for the current year compared to the previous year is due to the high operating and production expenses, the rise in the prices of raw materials, and the high general expenses. The company incurs non-recurring expenses related to the process of increasing the capital by issuing priority rights shares.
On the other hand, Al Kathiri Holding Company announced the decision of the Board of Directors to approve the increase of the company's capital by capitalizing part of the retained profits by granting one share for every four shares. .
The percentage of the capital increase is 25%, from 90,417,600 riyals to 113,022,000 riyals.
and the company clarified that the reason for the increase is to support the company's financial position and meet the needs of future expansions.
and indicated that the increase will be made by capitalizing (22,604,400) Saudi riyals from the retained earnings account.
