Dur Hospitality Co. announces its Interim Financial Results for the Period Ending on 2023-09-30 ( Nine Months )

31 October 2023 04:21 PM

DUR 4010 15.19% 27.00 3.56

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	149,389	120,661	23.81	177,810	-15.98
Gross Profit (Loss)	30,487	18,906	61.26	41,153	-25.92
Operational Profit (Loss)	18,360	9,384	95.65	28,034	-34.51
Net Profit (Loss) after Zakat and Tax	4,400	-2,078	-	7,040	-37.5
Total Comprehensive Income	4,400	-2,078	-	7,040	-37.5
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	495,349	391,105	26.65
Gross Profit (Loss)	123,077	73,469	67.52
Operational Profit (Loss)	85,408	41,428	106.16
Net Profit (Loss) after Zakat and Tax	28,426	34,891	-18.53
Total Comprehensive Income	28,426	34,891	-18.53
Total Share Holders Equity (after Deducting Minority Equity)	1,627,406	1,591,841	2.23
Profit (Loss) per Share	0.28	0.35
All figures are in (Thousands) 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	The company’s operating revenues increased during the current quarter by 28.7 million riyals, or 23.8% over the same quarter of 2022. This is due to the increase in demand for hotels compared to the same quarter of the previous year. The company's operating profit also increased by 9 million riyals, i.e., by 95.7%, over the same quarter. Thus, the company achieved a net profit for the current quarter amounting to 4.4 million riyals, compared to achieving a net loss for the same quarter of (2.1) million riyals. It should be noted that the company’s financial results for the current quarter were affected by a positive financial impact of 7.1 million riyals as a result of the settlement that took place between the company and a financial institution regarding financial derivatives contracts.
The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is	The reason for the decrease in net profit for the current quarter compared to the previous quarter is that the revenues of the company’s hotels in Makkah were affected due to the fact that the largest part of the Hajj season for the year 1444H occurred during the previous quarter.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	Operating revenues increased during the current period by an amount of 104.2 million riyals, i.e., by 26.7%, due to the improvement in the revenues of the company’s hotels due to the return of the number of pilgrims and Umrah to their previous levels, in addition to the increase in demand for other hotels compared to the similar period of the previous year in 2022. Operating profit for the current period also increased by an amount of 44 million riyals, i.e., 106.2%, compared to the similar period. The decrease in profit for the current period compared to the similar period of last year is due to adjusting the profit for the similar period of the last year for the income recognized from the accounting treatment of financial derivatives, which amounted to 32.7 million riyals, and without the effect of that adjustment, there is a growth in the net profit for the current period in the amount of 26.3 million riyals riyal or 1207%
Statement of the type of external auditor's report	Unmodified conclusion
Reclassification of Comparison Items	Some of the comparative numbers have been reclassified to be consistent with the current period presentation.
Additional Information	During the three-month period ending December 31, 2022, the Company processed the accounting for financial derivatives retrospectively relating to prior periods. These adjustments relate to interest rate swaps, which were not recorded in periods prior to December 31, 2022.

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