Riyadh – Mubasher: Saudi Airlines Catering Company reported on Tuesday a 9.08% decrease in net profits for the third quarter of 2016.
The company posted SAR 149.5 million ($39.8 million) in Q3-16 down from SAR 164.49 million ($43.8 million) in Q3-15, according to a bourse filing.
Total revenue increased 2.3% to SAR 592 million in Q3 from SAR 578.8 million in Q3-15, due to the growth attributed to Business Lounge and non-airline revenue.
Gross profit also rose 4.6% mainly due to lower material costs, which compensated the increase in personnel costs, depreciations and rents.
On the other hand, operating profit went down 7.1%, due to an increase of an allowance for bad debts during Q3-16.
An increase in payroll costs and a release of excess provision for technical services agreement in 2015 pertaining to 2014 contributed to lower operational profit, said the statement.
Net income decreased by 9.1% mainly due to an increase of allowance for bad debts Q3 2016 and an increase in payroll costs.
Net profits fell 14.07% to SAR 436.3 million in the first nine months of 2016 from SAR 507.7 million during the same period of 2015.
