Saudi Ground Services Co. announces its Interim Financial Results for the Period Ending on 2022-09-30 ( Nine Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 555,091 | 420,692 | 31.95 | 495,706 | 11.98 |
| Gross Profit (Loss) | 47,502 | 56,935 | -16.57 | 52,126 | -8.87 |
| Operational Profit (Loss) | -19,775 | -28,776 | -31.28 | -11,267 | 75.51 |
| Net Profit (Loss) after Zakat and Tax | -50,851 | -43,487 | 16.93 | -66,850 | -23.93 |
| Total Comprehensive Income | -50,851 | -43,487 | 16.93 | -66,850 | -23.93 |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 1,475,595 | 1,168,469 | 26.28 |
| Gross Profit (Loss) | 147,192 | 125,392 | 17.39 |
| Operational Profit (Loss) | -51,324 | -103,901 | -50.6 |
| Net Profit (Loss) after Zakat and Tax | -136,715 | -153,342 | -10.84 |
| Total Comprehensive Income | -136,715 | -153,342 | -10.84 |
| Total Share Holders Equity (after Deducting Minority Equity) | 2,127,999 | 2,345,842 | -9.29 |
| Profit (Loss) per Share | -0.73 | -0.82 | |
| 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 revenue increased by SAR 134.4 million (31.9%) compared to the same quarter of the previous year. This increase is due to the recovery and growth witnessed by the aviation sector after the lifting of the pandemic restrictions and the increase in the number of domestic and international flights, as well as the seasonal flights associated with the Hajj season. Further, major factors that impacted the increase in revenue compared to the same quarter of the previous year included new contracts with both local and foreign companies and increase in Umrah-related flights.
The costs of revenue increased by SAR 143.8 million (39.5%) compared to the same quarter of the previous year. This was mainly driven by Hajj operations for this year which increased the number of seasonal employees. These costs are seasonal and non-recurring for the remaining year. This increase was expected after lifting the pandemic restrictions and increase umrah related flights, which reflects the continuous efforts made by the company to meet manpower and equipment for operational demand. Additionally, the increase in Zakat charge by SAR 13.9 million resulted in the net loss of SAR 50.9 million which is an increase of 16.9% in the current quarter compared to the same quarter of the previous year.
Other income increased by SAR 1.6 million and the impairment loss decreased by SAR 18.4 million, which reduced the operating loss by 31.3% compared to the same quarter of the previous year. In addition, the share of profit from equity accounted investments increased by SAR 1.7 million while gain on investments at FVTPL decreased by SAR 4 million. |
| 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 company's loss for the current quarter decreased by 23.9% to reach SAR 50.9 million, compared to SAR 66.9 million in the previous quarter. This is mainly due to increase in revenue by SAR 59.4 million (12%) compared to the previous quarter as a result of recovery in the aviation sector and the continuous increase in the number of domestic and international flights since the lifting of pandemic restrictions, and the increase in the number of seasonal flights during the Hajj operation this year. Furthermore, the company also has new contracts with local and foreign companies along with the increase in umrah related flights which contributed to increase in revenue.
The costs of revenue increased by SAR 64 million (14.4%) compared to the previous quarter. This was mainly driven by increase in number of flights due to lifting of the pandemic restrictions and for the Hajj operations as result of deploying seasonal employees. These costs are seasonal and non-recurring for the remaining year. The company’s preparation for Umrah related flights also contributed to the higher costs for the operational readiness in relation to the expected increase in flights during the coming period, which reflects the continuous efforts made by the company to meet operational demand.
Zakat charge decreased by SAR 20.9 million (41%) whilst gain on investments at FVTPL and share of profit from equity accounted investments increased by SAR 1.9 million and SAR 1.4 million respectively which led to a reduction of the company's loss compared to 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 | The company’s loss decreased by 10.8% which amounted to SAR 136.7 million compared to the same period of the previous year despite the suspension of the Saned support amounting to SAR 68.2 million and increase in Zakat charge by SAR 71 million. Furthermore, revenue increased by 307.1 million (26.3%) due to the recovery and growth witnessed by the aviation sector after the lifting of the pandemic restrictions and the increase in the number of domestic and international flights, as well as the seasonal flights associated with the Hajj operation. Further, major factors that impacted the increase in revenue included new contracts with both local and foreign companies and increase in Umrah related flights.
The costs of revenue increased by SAR 285.3 million (27.4%) compared to the same period of the previous year. This was mainly driven by increase in number of flights due to lifting of pandemic restrictions and deploying seasonal employees for Hajj operations. These costs are seasonal and non-recurring for the remaining year. The company’s preparation for Umrah related flights also contributed to the higher costs for the operational readiness in relation to the expected increase in flights during the coming period, which reflects the continuous efforts made by the company to meet operational demand.
Other income and gain on FVTPL investment increased by SAR 4 million and SAR 21.4 million respectively while impairment loss and share of loss from equity accounted investments reduced by SAR 30.4 million and SAR 15.9 million respectively, which reduced the company loss for the current period compared to the same period of previous year. |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | None |
| Reclassification of Comparison Items | The corresponding figures have been rearranged and reclassified, wherever considered necessary for the purposes of comparison and better presentation |
| Additional Information | With the outbreak of COVID-19 and the suspension of domestic and international commercial flights from mid of March 2020, as a result of precautionary measures taken by the authorities, the company's management has formed a Business Continuity Executive Committee, which developed a plan with different scenarios and several possibilities to reduce the impact of COVID-19 on the expected financial results and the associated cash flows. The committee identified initiatives to optimize costs without affecting the company’s ability to ramp-up its operational capabilities with the gradual recovery from easing the precautionary measures taken by the official authorities to limit the spread of COVID-19. Lifting of COVID-19 precautionary measures has been announced with effect from 6th of March,2022.
Total revenue for the current quarter amounted to SAR 555.1 million compared to SAR 420.7 million for the same quarter of the previous year which is an increase of 31.9%. The net loss for the current quarter amounts to SAR 50.9 million compared to net loss of SAR 43.5 million for the same quarter last year which is an increase of 16.9%. The net loss for the current period amounts to SAR 136.7 million compared to net loss of SAR 153.3 million for the same period last year which is a decrease of 10.8%.The net loss for the current quarter is SAR 50.9 million compared to net loss of SAR 66.9 million for the previous quarter which is a decrease of 23.9%. The comprehensive loss for the current quarter is SAR 50.9 million compared to comprehensive loss of SAR 43.5 million for the same quarter last year which is an increase of 16.9%. The comprehensive loss for the current period amounts to SAR 136.7 million compared to comprehensive loss of SAR 153.3 million for the same period last year which is a decrease of 10.8%. The Company has no minority interest with total shareholders' equity reaching to SAR 2,127.9 million for the current period compared to SAR 2,345.8 million for the same period last year which is a decrease of 9.3%. |
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