Fawaz Abdulaziz Alhokair Co.’s net profit after zakat and tax in Q1 FY 2020 declined by 10 percent to SAR 224 million, compared to SAR 249.2 million in the same quarter of the previous year, the company said in a bourse filing.
This was primarily due to implementation of IFRS 16 starting from 1 April 2019, the statement said, adding that the implementation resulted in the booking of an additional SAR 26 million in costs.
Revenues decreased by 6 percent, the equivalent of SAR 113.3 million, compared to the same quarter of the previous year.
This was driven by implementation of a portfolio optimization strategy mandating the termination and closure of non-performing stores and disposal of weak brands.
Consolidated net profit in Q1 FY2020 grew by 259 percent to SAR 224 million compared to a loss of SAR 141 million in Q4 FY2019.
Revenue increased by 61.5 percent, the equivalent of SAR 660 million, compared to Q4 FY2019, while gross profit grew by 1795 percent, the equivalent of SAR 623.4 million during the same period.