Saudi Ground Services Co. announces its Annual Financial Results for the Period Ending on 2022-12-31
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 1,977,037 | 1,607,933 | 22.95 | ||
| Gross Profit (Loss) | 159,039 | 194,979 | -18.43 | ||
| Operational Profit (Loss) | -119,655 | -173,476 | -31.02 | ||
| Net Profit (Loss) after Zakat and Tax | -244,488 | -254,410 | -3.9 | ||
| Total Comprehensive Income | -162,684 | -234,470 | -30.62 | ||
| Total Share Holders Equity (after Deducting Minority Equity) | 2,102,030 | 2,264,714 | -7.18 | ||
| Profit (Loss) per Share | -1.3 | -1.35 | |||
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | Total comprehensive loss decreased by 30.6% amounting to SAR 162.7 million compared to the previous year (SAR 234.5 million) mainly due to the continuous operational recovery resulting in an increase in revenue by 23.0%, amounting to SAR 369.1 million. In addition, the increase in actuarial gain by SAR 61.9 million contributed to the decrease in total comprehensive loss compared to the previous year.
The company's net loss decreased by 3.9% to reach SAR 244.5 million compared to the previous year, mainly due to the increase in zakat expense during the year by SAR 126.8 million. The net loss before zakat decreased by 63.8% to reach SAR 77.6 million compared to the previous year, despite the suspension of Saned support amounting to SAR 68.2 million compared to the previous year. The revenue increased by 23.0% compared to the previous year due to the continuous operational recovery which resulted in increased number of flights, as the recovery reached 99% at the end of 2022 (when compared to pre-covid level of operations). This resulted positively in decreasing the operational loss by 31% compared to previous year.
Zakat expense and finance cost increased by SAR 126.8 million and SAR 4.4 million respectively while income from financial assets at FVTPL, share of profit from equity accounted investment and other income increased by SAR 20.4 million, SAR 58.8 million and SAR 8.1 million respectively, which contributed to the decrease in the total comprehensive loss compared to the previous year. |
| Statement of the type of external auditor's report | Unmodified opinion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | No reservations |
| Reclassification of Comparison Items | Certain prior year amounts have been reclassified for purposes of comparison and better presentation. Please refer Note 29 for the detail disclosure. |
| 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.
Total revenue for the year amounted to SAR 1,977 million compared to SAR 1,607.9 million for the previous year which is an increase of 23.0%. Whereas the gross profit for the current year SAR 159.0 million compared to SAR 194.9 million for the previous year which is a decrease of 18.4%. The operating loss for the current year amounts to SAR 119.6 million compared to SAR 173.5 million for the previous year which has decreased by 31%. The net loss after zakat for the current year amounts to SAR 244.5 million compared to net loss of SAR 254.4 million for the previous year which is a decrease of 3.9%. The total comprehensive loss for the current year amounts to SAR 162.7 million compared to total comprehensive loss of SAR 234.5 million for the previous year which is a decrease of 30.6%. The Company has no minority interest with total shareholders' equity reaching to SAR 2,102.0 million for the current year compared to SAR 2,264.7 million for the previous year which is a decrease of 7.2%. The loss per share for the current year amounted to SAR 1.3 compared to SAR 1.35 loss per share for the previous year. |
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