Fawaz Abdulaziz Al-Hokair's losses increased by 267% to reach 98.2 million riyals in the second quarter of 2020, compared to losses of 26.7 million riyals in the same period of the year 2019.
According to Arabiya Net, the company said that the reason for recording a consolidated net loss of 98.2 million riyals during the second quarter of the fiscal year 2021, compared to a net loss of 26.7 million riyals During the same period of the previous year, it is mainly due to the effect of declining revenues and declining profits with the increase in value-added tax.
The company's revenues decreased by 4.0% during the second quarter of the fiscal year 2021, equivalent to 49.0 million riyals compared to the second quarter of the fiscal year 2020, and this is due to The continuation of the recovery period of the company's activities after the closure of its subsidiary stores for extended periods during the first quarter of the fiscal year 2021 due to the repercussions of the spread of the virus (Covid 19). This decrease also comes as a result of the implementation of the strategy of closing the exhibitions that do not generate profits for the company and excluding the signs that are not part of the strategic relations during the period.
and the gross profit decreased by 71.7% during the second quarter of the fiscal year 2021, equivalent to 131.4 million riyals compared to the second quarter of the fiscal year 2020, and this reflects the impact of a decrease Revenue.
The total profit was also affected by an increase in the value-added tax rate in the Kingdom from 5% to 15% as of July 1, 2020, noting that the company incurred the increase in value tax Added to the products of some of its subsidiary brands during the months of July and August 2020.
As for general and administrative selling expenses, they increased at an annual rate of 57.3% to 108.2 million riyals during the second quarter of the fiscal year 2021. This increase is mainly due to the increase Personnel related costs compared to the second quarter of the previous year that saw the company receive exceptional support for personnel costs from the Human Resources Development Fund.
The selling, general and administrative expenses also included exceptional costs related to the restructuring process, which the company decided to record during the second quarter of the fiscal year 2021, instead of extinguishing it over long periods .
and other gains rose at an annual rate of 112.1% to 133.4 million riyals during the second quarter of the fiscal year 2021, as this increase reflects the success of the company's negotiations with the owners of the properties on which the stores are built Which resulted in the company obtaining all rental discounts related to addressing the repercussions of the (Covid 19) virus.
