The consumer services sector reduces its losses by 64% in the...

Mubasher: Thabet Shehata: The losses of companies listed in the Saudi consumer services sector declined significantly during the second quarter of 2021, after “Sera Holding” reduced net losses, and “Al Hokair Group” turned to profitability, in light of the easing of restrictions imposed on some activities.

A statistic for “Mubasher” based on companies’ disclosures on the Saudi stock market “Tadawul” revealed that the combined results of the companies listed within the sector incurred a net loss of 111.46 million riyals in the second quarter of this year, compared to 311.3 million riyals for the same period last year.

The consumer services sector includes 8 companies whose fiscal year coincides with the Gregorian year, in addition to the National Education Company and Ataa Educational Company, whose fiscal year does not coincide with the end of the year.

Losses dominated the majority of companies listed within the sector, as 6 companies incurred net losses in the second quarter of this year, and gains were limited to Herfy Food and Leejam Sports Company.

Seera Holding Group topped the list of losing companies in the second quarter, capturing about 88% of the total losses, despite the company’s losses dropping to about 98 million riyals, compared to 172 million riyals for the second quarter of last year, bringing the company’s losses down about 43%.

The company attributed the decline in losses in the second quarter of 2021, to the increase in the value of reservations as a result of the start of the recovery of the tourism and travel sector, in addition to the increase in revenues after the resumption of international travel, the easing of restrictions, and the return of tourism and recreational activities.

The second place in terms of the highest losses in the consumer services sector was for the Abdul Mohsen Al Hokair Group for Tourism and Development, which recorded net losses of about 70 million riyals, compared to profits of 2.07 million riyals for the second quarter of 2020.

Al Hokair Group explained that its transformation of losses came as a result of the decline in the hotel sector’s revenues due to the repercussions of the Corona pandemic, the closure of some useless projects and the exclusion of their assets, and the recording of a provision for depreciation of property and equipment.

The Touristic Projects Company “Shams” came in third place in terms of the highest losses, after the company’s losses jumped to 13.2 million riyals, for the second quarter of this year, compared to 1.98 million riyals, for the same quarter of last year, an increase of 566%.

The company attributed the increase in net losses to calculating a provision for legal claims, provisions for debit balances, and an increase in zakat expenses as a result of zakat adjustments for previous years.

On the other hand, Leejam Sports Company “Fitness Time” recorded the highest gains in the consumer services sector in the second quarter of 2021, with a net profit of 50.89 million riyals, compared to about 91 million riyals net losses for the second quarter of 2020.

The company indicated that its transformation to profitability is due to the increase in revenues, which came as a result of the increase in subscriptions, in addition to the decrease in the cost of financing and the increase in other revenues.

first half

As for the results of the consumer services sector companies, in the first half of 2021, “Mubasher” statistic revealed a total loss of about 300.6 million riyals, compared to net profits of 840 million riyals during the same period last year.

Seera Group retained the lead in terms of the highest losses, after witnessing a negative shift with a net loss of about 230 riyals for the first half of this year, compared to profits of 940 million riyals, for the same period in 2020.

Al Hokair Group recorded the second highest loss in the first half, with a net loss of 130 million riyals, during the first six months of 2021, compared to a net profit of 4.18 million riyals for the first half of last year.

Herfy Food Company had the highest profits in the consumer services sector, in the first half of this year, after the company witnessed a positive transformation with a net profit of 52.14 million riyals, compared to losses of 9.11 million riyals during the same period in 2020.

للمزيد:

The return of activity jumps in the profits of Saudi companies in the second quarter..10 companies seize 91%

Aramco jumps the profits of the Saudi energy sector 301% in the second quarter of 2021

Positive transformation for Saudi petrochemical companies in the second quarter… and “SABIC” grabs 62%

The profits of Saudi banks doubled 10 times in the second quarter… and jumped 111% in 6 months

Major companies drop the profits of the Saudi food production sector by 45% in the second quarter of 2021

“Sulaiman Al-Habib” increases Saudi healthcare profits by 42% in the second quarter of 2021

Losses of Saudi transport companies decline 90% in the second quarter… and a positive shift in the first half

“Jabal Omar” leads Saudi real estate companies to positive results in the second quarter of 2021

These were the details of the news The consumer services sector reduces its losses by 64% in the... for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.

It is also worth noting that the original news has been published and is available at saudi24news and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.

NEXT Emirates carried over 10m passengers this summer

Author Information

I have been an independent financial adviser for over 11 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicize valuable information for shareholder community. Address: 2077 Sharon Lane Mishawaka, IN 46544, USA Phone: (+1) 574-255-1083 Email: [email protected]