Saudi Ground Services Co. Announces Contract Sign Off with Saudi Airlines Catering Co.

Saudi Ground Services Co. Announces Contract Sign Off with Saudi Airlines Catering Co.

The Saudi Ground Services Company announces the signing of a contract with Saudi Airlines Catering Company dated 24th November 2021G. Which can be summarized in, Saudi Airlines Catering Co. will be providing catering service in residential Complexes and inside the Terminals of Riyadh, Jeddah, Dammam, and Madinah to Saudi Ground Services Company. The contract will extend for 2 years and it is amounted for approximate 51M SAR.

The Company expects that the signed contract will contribute positively to the sustainability of the company’s business and enhances its works, we are expecting to see the effective impact on the financial results starting from the Last Quarter (Q4) for the year 2021G.

Saudi Ground Services Co. announces its Interim Financial Results for the Period Ending on 2021-09-30 (Nine Months)

Saudi Ground Services Co. announces its Interim Financial Results for the Period Ending on 2021-09-30 (Nine Months)

 

ELEMENT LIST CURRENT QUARTER SIMILAR QUARTER FOR PREVIOUS YEAR %CHANGE PREVIOUS QUARTER % CHANGE
Sales/Revenue 420,692 267,901 57.032 374,821 12.238
Gross Profit (Loss) 56,935 -10,224 10,836 425.424
Operational Profit (Loss) -28,776 -96,889 -70.3 -63,360 -54.583
Net Profit (Loss) after Zakat and Tax -43,487 -86,790 -49.893 -93,163 -53.321
Total Comprehensive Income -43,487 -86,790 -49.893 -93,163 -53.321
All figures are in (Thousands) Saudi Arabia, Riyals

 

ELEMENT LIST CURRENT PERIOD SIMILAR PERIOD FOR PREVIOUS YEAR %CHANGE
Sales/Revenue 1,168,469 895,165 30.531
Gross Profit (Loss) 125,392 -32,960
Operational Profit (Loss) -103,901 -301,201 -65.504
Net Profit (Loss) after Zakat and Tax -153,342 -336,202 -54.389
Total Comprehensive Income -153,342 -336,202 -54.389
Total Share Holders Equity (after Deducting Minority Equity) 2,345,842 2,609,686 -10.11
Profit (Loss) per Share -0.82 -1.79
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 losses decreased by 49.9% compared to the same quarter of the previous year as the current quarter recorded a net loss of SAR 43.5 million in comparison to previous year same quarter net loss of SAR 86.8 million. The main reason for this decline is due to continuous recovery of the business operation which has directly impacted the revenue with an increase of SAR 152.8 millionThe operating costs have increased by SAR 85.6 million mainly due to suspension of Saned subsidization amounting to SAR 90 million during current quarter, the company has taken initiatives aimed at increasing operating efficiency and reducing the impact of the pandemic on profitability.

The finance cost increased by SAR 4.5 million due to the drawdown from bank facilities and zakat expenses have increased by SR 9.4 million compared to same quarter of the previous year. The Company also recorded a decrease in gain on FVTPL investment amounting to SAR 9.7 million.”

The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is “The Company’s losses decreased by 53.3% mainly driven from recovery of flights, the current quarter recorded a net loss of SAR 43.5 million in comparison to previous quarter net loss of SAR 93.2 million. The main reason for this decline is due to continuous recovery of the business operation which has directly impacted the revenue by an increase of SAR 45.9 million.Despite the suspension of Saned subsidization amounting to SAR 8 million and increase in business operations in current quarter, the company has taken initiatives aimed at increasing operating efficiency and reducing the impact of the pandemic on profitability.

The Company recorded an increase in impairment loss and zakat expenses by SAR 13.8 million and SAR 10.1 million respectively compared to the previous quarter. The share of losses from equity accounted investments reduced by 14.2 million whilst gain on FVTPL investments increased by SAR 12 million. “

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 losses decreased by 54.4% compared to the same period of the previous year as the current period recorded a net loss of SAR 153.3 million in comparison to previous year same period net loss of SAR 336.2 million. The main reason for this decline is due to the continuous recovery of the business operation has directly impacted the revenue by an increase of SAR 273.3 million and indirectly reduced the impairment loss by SAR 45 million.The operating costs have increased by SAR 115 million mainly due to significant reduction in Saned subsidization by SAR 112 million in the current period. Along with the improvement in the flights recovery, the company has taken initiatives aimed at increasing operating efficiency and reducing the impact of the pandemic on profitability.

The share of loss from equity accounted investment reduced by SAR 6.5 million whilst the other income and gain on FVTPL investment increased by SAR 7.7 million and SAR 2 million respectively. The finance cost increased by SAR 15.1 million due to the drawdown from bank facilities. “

Statement of the type of external auditor’s report Unmodified conclusion
Reclassification of Comparison Items Certain comparative amounts have been reclassified to conform to the current period’s presentation.
Additional Information “(1) With the outbreak of COVID-19 and the suspension of domestic and international commercial flights from mid March 2020, as a result of precautionary measures taken by the government, 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 has 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.(2) Total revenue for the current quarter amounted to SAR 420.7 million compared to SAR 267.9 million for the same quarter of the previous year which is an increase of 57%. The net loss for the current quarter amounts to SAR 43.5 million compared to net loss of SAR 86.8 million for the same quarter last year which is a decrease of 49.9%. The net loss for the current period amounts to SAR 153.3 million compared to net loss of SAR 336.2 million for the same period last year which is a decrease of 54.4%.The net loss for the current quarter is SAR 43.5 million compared to net loss of SAR 93.2 million for the previous quarter which is a decrease of 53.3%. The comprehensive loss for the current quarter is SAR 43.5 million compared to comprehensive loss of SAR 86.8 million for the same quarter last year which is a decrease of 49.9%. The comprehensive loss for the current period amounts to SAR 153.3 million compared to comprehensive loss of SAR 336.2 million for the same period last year which is a decrease of 54.4%. The Company has no minority interest with total shareholders’ equity reaching to SAR 2,345.8 million for the current period compared to SAR 2,609.7 million for the same period last year which is a decrease of 10.1%.”

Cooperation between SGS & Monshaat

Cooperation between the Saudi Ground Services Company and “Monshaat” in the field of aviation services

The Saudi Ground Services Company has signed a cooperation agreement with the General Authority for Small and Medium Enterprises (Monsha’at) to work on developing and allowing facilities to enter the field of aviation services and ground handling in a way that serves the aviation sector in general.

Under the agreement, Monsha’at will nominate qualified entrepreneurs according to the approved mechanisms, provide solutions to business challenges, and assist entrepreneurs by providing advice and guidance in all stages of developing their projects, while Saudi Ground Services will provide experts and knowledge resources for ground handling operations in all its fields. The current and future ones are entrusted with the tasks of directing and supporting the owners of emerging projects, and assisting in facilitating the entry of enterprises into the field of work by incubating projects under the umbrella of business development in the company, in addition to providing an appropriate work environment through the innovation center that will be established through this cooperation, while providing support What is required inside the center.

The CEO of the Saudi Ground Services Company, Raed Al-Idrisi, explained that the agreement includes initiatives that enable the development of the aviation sector and ground handling services, in addition to providing material and practical support and the necessary expertise from both parties to enable companies to implement their solutions on the ground.