Riyadh – Mubasher: Saudi Airlines Catering Co. on Sunday reported a 6.33% year-on-year decline in net profits to SAR 130.42 million ($34.69 million) in the third quarter of 2017, from SAR 139.24 million ($37.06 million).

Quarter-on-quarter, profits were nearly unchanged from SAR 131.02 million.

Meanwhile, gross profit fell 5.22% to SAR 202.4 million in Q3-17 from SAR 213.55 million in the year-ago period, while operating profit amounted to SAR 137.56 million versus SAR 149.82 million, registering a decline of 8.18%, according to a bourse filing.

Saudi Catering attributed the decline in quarterly profits to higher cost of revenue particularly in personnel cost, which resulted in an impact of SAR.9.2 million or 14%.

As for the first nine months of 2017, Saudi Airlines Catering’s profits were down 6.94% to SAR 382.83 million from SAR 411.39 million in the same period of 2016.

Earnings per share (EPS) amounted to SAR 4.67 in the first three quarters of 2017, versus SAR 5.02, the company added.

The company ascribed the 6.94% profit fall in the period from January to September to lower in-flight catering sales to other foreign airlines and in airline equipment sales to Saudi Arabian Airlines Est.

In addition, a decrease in sales in catering and facilities “by exiting loss-making contracts of remote sites” contributed the profit decline.

“This was partly compensated by an increase in in-flight catering sales to Saudi Arabian Airlines Est.,” the company noted.