Riyadh – Mubasher: Saudi Airlines Catering Company (SACC) has reported an 84.9% annual plunge in net profits during the first quarter (Q1) of 2020 at SAR 15.6 million when compared to SAR 103.5 million.
Year-on-year (YoY), sales stood at SAR 452.7 million over Q1-20, down by 13.2% from SAR 521.6 million, according to a stock exchange filing on Wednesday.
The company attributed the falling profits during the past quarter primarily to disruption of business activities caused by the suspension of commercial flights in line with the kingdom’s precautionary measures against the coronavirus (COVID-19) pandemic. This has lowered sales and increased the accounts receivables provision by SAR 15.3 million whereas fixed costs remained unchanged.
It is worth noting that in 2019, Saudi Airlines Catering’s net profits levelled up by 1% to stand at SAR 463.9 million, compared with SAR 459.3 million in 2018.