Al Kathiri Holding Company turned to a loss in the second quarter of 2020, bringing its losses to 1.3 million riyals, compared to profits of 3 million riyals in the same quarter of last year.
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According to Arabiya Net, the company's profits decreased to 2.3 million riyals by the end of the first half of 2020, compared to 7.6 million riyals in the same period in 2019.
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The company said that the reason for the decline in profits during the current period compared with the same period of the previous year is due to:
1 - The decline in revenues as a result of the suspension of ready-mixed concrete activity due to the stoppages that came as a result of the precautionary measures taken by the government of the Kingdom of Saudi Arabia during the Corona pandemic.
2- The high operating costs incurred by the company as a result of the precautionary measures taken by the company during the Corona pandemic.
3- The high prices of cement, which led to relatively high sales, but they decreased as sales quantities due to the stoppages that came as a result of the precautionary measures taken by the government of the Kingdom of Saudi Arabia, Consequently, the relative decrease shown by the lists in the sales volume does not reflect the real decrease in sales quantities and as a result there is an increase in direct costs as a result of the company’s inability to reach the break-even point required to meet fixed costs.
(Amazon fun knowledge)
