Fawaz Abdulaziz Alhokair Co. Announces Its Interim Consolidated Financial Results for the Period Ended on 30 June 2020 (3 Months)
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 564.9 | 1,732.4 | -67.392 | 1,085 | -47.935 |
| Gross Profit (Loss) | -242.7 | 655.9 | - | 998.4 | - |
| Operational Profit (Loss) | -412.1 | 349.7 | - | 739.8 | - |
| Net Profit (Loss) after Zakat and Tax | -535.6 | 224 | - | 887.6 | - |
| Total Comprehensive Income | -525.4 | 224.9 | - | 915.4 | - |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Share Holders Equity (after Deducting Minority Equity) | 1,030.3 | 2,633.3 | -60.874 |
| Profit (Loss) per Share | -2.6 | 1.1 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to | Consolidated Net Profit decreased to book a Net Loss of SAR 535.6 million in Q1-FY2021, compared to a Net Profit of SAR 224.0 million in the same quarter of the previous year, mainly driven by the following: |
• Revenue: Decreased by 67.4% in Q1-FY2021, the equivalent of SAR 1,167.5 million, compared to the same quarter of the previous year, driven primarily by the temporary closure of the Company’s retail units as a result of the COVID-19 pandemic. Following directives of the Saudi Arabian Government aiming to safeguard the health of citizens and residents and to contain the spread of COVID-19 in the Kingdom, the Company temporarily closed most of its retail units in the Kingdom starting from 16 March 2020. Alhokair’s retail units were gradually reopened between 26 April and 21 June 2020, in line with the lifting of containment measures. COVID-related closures during the quarter accounted for the majority of the decrease in revenues compared to the same quarter of the previous year. The decrease was also driven by the implementation of the final stages of a portfolio optimization strategy mandating the termination and closure of non-performing stores and disposal of weak brands.
• Gross Profit: Decreased to book a Gross Loss of SAR 242.7 million in Q1-FY2021, compared to a Gross Profit of SAR 655.9 million in Q1-FY2020, driven primarily by the decrease in revenues resulting from COVID-related store closures during the period. Gross profitability was further affected by the recognition of SAR 152.4 million in depreciation expenses related to the adoption of IFRS 16, as well as SAR 106.0 million in one-time provisions arising from the write-off of ageing inventory.
• Selling, general and administrative expenses (SG&A) recorded SAR 91.5 million in 1Q-FY21, down 1.3% y-o-y thanks to increased operational efficiencies.
• One-off impairments of SAR 63.2 million in 1Q-FY21 related to certain investments in foreign markets and fixed assets.
• Revenue: Decreased by 47.9% in Q1-FY2021, the equivalent of SAR 520.1 million, compared to Q4-FY2020. This reduction in revenues for the quarter was mainly driven by the temporary closure of most of the Company’s retail units during Q1-FY2021 as a result of the COVID-19 pandemic. Whereas the impact from COVID-related closures during Q4-FY2020 was restricted to the final two weeks of the quarter, with containment measures implemented beginning from 16 March 2020, Q1-FY2021 saw containment measures being implemented in some form up to the final nine days of the quarter. The top-line impact from COVID-related closures was proportionally larger during Q1-FY2021.
• Gross Profit: Increased to book a Gross Loss of SAR 242.7 million in Q1-FY2021, compared to a Gross Loss of SAR 998.4 million in Q4-FY2020. Weak quarterly performance at the Gross Profit level was driven mainly by the reduction in revenues as a result of COVID-related closures during Q1-FY2021.
• The Company recorded an EBITDA loss of SAR 397.4 million in 1Q-FY21 versus an EBITDA-level profit of SAR 563.1 million for the same period last year. EBITDA profitability was impacted by lower revenue along with one-off costs SAR 169.2 million in 1Q-FY21 (inventory write-offs and asset impairments). Excluding the one-off costs, EBITDA losses would narrow to SAR 228.2 million in 1Q-FY21.
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