Fawaz Abdul Aziz Al Hokair & Partners Company “Al Hokair” turned into a profit of about 38 million riyals in the company’s fiscal year ending on March 31, 2022, compared to losses of about 1.109 billion riyals in the previous fiscal year.
Al Hokair said in a statement on the Saudi Tadawul today, Thursday, that the shift to profitability is due to several factors, including an increase in revenues by 39.8%, or the equivalent of 1.68 billion riyals, to reach about 5.915 billion riyals, which reflects the impact of easing restrictions. The precautionary measures to contain the Covid-19 pandemic during the fiscal year 2021, which in turn led to a recovery in commercial activity and a remarkable progress in consumer sentiment locally and globally.
She added that the total profit rose to 990.8 million riyals for the fiscal year 2022, from a total loss of 88.3 million riyals in the 2021 fiscal year, mainly due to the increase in revenues, the expansion of commercial margins, and the calculation of non-recurring inventory-related provisions of 398 million riyals in the fiscal year. 2021.
This resulted in a gross profit margin of 16.8% for the 2022 fiscal year.
While the accumulated losses for the fiscal year 2022 amounted to 982.3 million riyals, which represents 46.8% of the company’s capital of 2.1 billion riyals, compared to the cumulative losses of 1.038 billion riyals for the fiscal year 2021, which represented 49.4% of the company’s capital.
The accumulated losses are mainly due to those losses incurred during the fiscal year 2021 as a result of closing stores in response to the global pandemic and the associated loss of revenue, in addition to recording stock-related provisions.