Fawaz Abdulaziz Alhokair Co. Announces Its Interim Financial Results for the Period Ending on 2022-09-30 (Six Months)
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 1,372.9 | 1,361.3 | 0.85 | 1,705.6 | -19.51 |
| Gross Profit (Loss) | 192.6 | 232.3 | -17.09 | 278.1 | -30.74 |
| Operational Profit (Loss) | 77.8 | 116.3 | -33.1 | 143.7 | -45.86 |
| Net Profit (Loss) after Zakat and Tax | 23.3 | 20.9 | 11.48 | 57.7 | -59.62 |
| Total Comprehensive Income | 26 | 23.7 | 9.7 | 65.4 | -60.24 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 3,078.5 | 3,062 | 0.54 |
| Gross Profit (Loss) | 470.8 | 564.9 | -16.66 |
| Operational Profit (Loss) | 221.5 | 244.4 | -9.37 |
| Net Profit (Loss) after Zakat and Tax | 81 | 66.6 | 21.62 |
| Total Comprehensive Income | 91.4 | 80.6 | 13.4 |
| Total Share Holders Equity (after Deducting Minority Equity) | 595.5 | 532.2 | 11.89 |
| Profit (Loss) per Share | 0.69 | 0.6 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | Consolidated net profit amounted to SAR 23.3 million in Q2-FY23 (ending 30 September 2022), increasing 11.7% YoY, compared to a net profit of SAR 20.9 million in Q2-FY22, essentially driven by the net impact of the following: |
• Revenue: Stable at SAR 1,372.9 million, compared to SAR 1,361.3 million for Q2-FY22. The muted performance was the result of a slowdown in the domestic market, which was offset by the improvement in both international retail (+9% YoY) and F&B revenues (+5% YoY). Saudi retail revenue decreased 2.0% YoY, as a result of seasonality and inflationary pressures, which are impacting consumers’ purchasing power and discretionary spending.
• Gross Profit: Declined to SAR 192.6 million for Q2-FY23 from SAR 232.3 million in Q2-FY22, due to the overall decline in Saudi retail trading margins during this period. This translated to a Gross Profit Margin of 14.0%, compared to 17.1% in Q2-FY22.
• Selling, General and Administrative Expenses (SG&A): Decreased by 2.7%, the equivalent of SAR 3.1 million, to SAR 113.8 million, as the Company continues to focus on cost optimization. As a result, overall SG&A-to-revenue decreased to 8.3% in Q2-FY23 from 8.6% in Q2-FY22.
• Net Finance Cost: Decreased 41.7% YoY, the equivalent of SAR 29 million, to SAR 41 million, essentially due to the partial capitalization of interest costs that are part of property, plant and equipment, in line with the requirements of international accounting standards.
• Revenue: Decreased by 19.5% from SAR 1,705.6 in Q1-FY23 to SAR 1,372.9 million, driven primarily by the declining performance in the domestic market, which largely outweighed the sustained recovery in F&B and international retail. In specific, KSA retail revenues decreased 28.1% sequentially, as Q1 was boosted by the heightened sales activity arising from the occurrence of the Holy month of Ramadan and Eid Al Fitr, in April and May 2022, respectively, and the seasonally softer summer months, which was exacerbated by a return to travel after a 2-year hiatus.
• Gross Profit: Declined 30.7% to SAR 192.6 million for Q2-FY23 from SAR 278.1 million in Q1-FY23, as a result of the subdued revenues. This translated to a Gross Profit Margin of 14.0%, compared to 16.3%, in Q1-FY23.
• Selling, General and Administrative Expenses (SG&A): declined 12.1%, the equivalent of SAR 15.7 million, from SAR 129.5 million in Q1-FY23 to SAR 113.8 million, driven by Alhokair’s continued focus on cost rationalization and operational efficiencies.
• Net Finance Cost: decreased 39.4% to SAR 41 million, predominantly due to the partial capitalization of interest costs that are part of property, plant and equipment, in line with the requirements of international accounting standards.
• Revenue: Relatively unchanged at SAR 3,078.5 million for H1-FY23, as the sales generated by the Company’s home operations (KSA retail) declined 3.1% YoY during the period, thus outpacing the positive impact of the improved performance from the international portfolio and the F&B segment (+15.2% YoY and +6.5% YoY, respectively).
• Gross Profit: Declined 16.7% YoY from SAR 564.9 million for H1-FY22 to SAR 470.8 million for H1-FY23, on the back of the flat topline performance, as well as a decline in trading margins.
• Selling, General and Administrative Expenses (SG&A): Decreased 6.3%, to reach SAR 243.3 million compared to SAR 259.7 million in H1-FY22, as a result of the company’s focus on cost optimization and improving efficiency.
• Net Finance Cost: Decreased by 23.5% to SAR 109.3 million due to the partial capitalization of interest costs that are part of property, plant and equipment, in line with the requirements of international accounting standards.
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