Fitaihi Holding Group achieved profits of 30 million riyals during 2020 compared to losses of 9.54 million riyals in 2019, and revenues amounted to 113.212 million riyals, compared to 73.82 million riyals in 2019.


According to Arabnet, the company said in a statement that the reason for achieving a net profit during the year 2020 is due to the profit from selling the shares of an associate company - Al-Jouf Agricultural Development Company - amounting to 32.1 million riyals during the year 2020 AD compared to not achieving a sale profit during the previous year, within the framework of a strategy Fitaihi Holding Group, pursuant to the Group’s Board of Directors’s decision to sell a portion of 5.01% of its associate’s capital, Al Jouf Agricultural Development Company, according to the company's announcement published on the Tadawul website on September 15, 2020.

and also, making a profit from the return of part of the value of the decline in the investment in an associate company, Al-Jouf Agricultural Development Company - amounted to 16 million riyals during the year 2020 AD, compared to achieving a drop of losses. 24.8 million riyals during the previous year, due to the improvement in the market value of the share of Al-Jouf Agricultural Development Company and the lack of justification for continuing to acknowledge the decrease in the investment value, after the price of Al-Jouf Agricultural Development Company’s share price rose above the book cost prior to the decrease.


The company explained that the profit is also due to the decrease in total selling and administrative expenses by 6.2 million riyals during the year 2020 AD, and by 17.2% for the previous year.


Dividend distribution

The company intends to distribute 11 million riyals to its shareholders for the profits of the second half of last year, by 2% of the nominal value of the share, to reach 20 halalas per share of profits.


Capital reduction

and the company announced the board of directors ’recommendation to reduce the company's capital to make it more than needed.


She explained that the board recommended reducing the capital by 50% from 550 million riyals to 275 million riyals.


The process of reducing the capital will be funded by using the surplus cash balances in the company, with the announcement of all the details through the shareholders ’circular in accordance with the statutory procedures.


The company said that there will be no material impact of the capital reduction on the company's financial or operating obligations, operations or performance. The management expects the reduction to have a positive impact on the ratios of the company's performance and profitability indicators.