Riyadh – Mubasher: Saudi Airlines Catering on Thursday reported a 6.9% year-on-year drop in its profits for the first quarter of 2017.
Net profits declined to SAR 121.39 million in Q1-17 from SAR 130.39 million in the corresponding period the year before, according to a filing to the Saudi Stock Exchange (Tadawul).
Quarter-on-quarter, profits grew 25.58% from SAR 96.66 million.
The company attributed the year-on-year decrease in profits to lower sales in the aircraft supply sector, catering, and facilities management, whereas retail sales increased due to opening a number of retail outlets in several Saudi airports.
The cost of sales increased by three percentage points in Q1-17, compared to the same quarter in the year earlier as a result of higher retail sales, as sales costs were higher than in-flight catering, the statement said.
The total amount of sales reached SAR 533.9 million in Q1-17, down 5% from SAR 559.2 million in the corresponding quarter in the year before, according to the statement.
The Saudi company previously reported a 22.53% slide in profits to SAR 541.14 million in 2016, compared to SAR 698.5 million in 2015.
The stock closed Wednesday 0.28% down to SAR 91.75.
