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Riyadh – Mubasher: Arabian Centres Company has gained SAR 642.6 million in net profits after Zakat and tax during the fiscal year (FY) ending on 31 March 2020, 20% less than SAR 804.1 million in the previous year.
Revenues for the twelve-month period ended last March inched up by 0.9% year-on-year (YoY) to stand at SAR 2.20 million, according to a bourse disclosure on Monday.
The drop in the annual earnings was primarily driven by the IFRS 16 impact as the depreciation of right-of-use assets soared to SAR 159.6 million and the interest expense on lease liabilities increased to SAR 134.5 million.
In addition, the company saw higher general and administration expenses by 6.2% or SAR 10.8 million, largely owing to the rise in staff cost and was offset by the drop in professional fees and government expenses.
Advertisement and promotion expenses also advanced by 129.5% or SAR 7.3 million.