Saudi Printing and Packaging Company recently released its mixed batch of preliminary financial results. The net profits during the third quarter of this year is down by 33% year on year, while at the same time company’s losses has declined almost 70% compared to the last year.
According to the company’s preliminary financial statements, its net profit after zakat (payment made annually under Islamic law on certain kinds of property and used for charitable and religious purposes, one of the Five Pillars of Islam) and tax amounted to 1.82 million riyals, compared to 2.71 million riyals for the same quarter of last year.
The company attributed the plunge in net profit to Covid 19 pandemic, as well as additional provision to meet the expected credit losses on receivables.
The company’s earnings decreased by 19% during the third quarter of 2020, which amounted to 204.45 million riyals, compared to 252.51 million riyals for the same quarter of last year.
The company’s incurred a loss of 11.6 million riyals during the first nine months of the current year, which comparing to 34 million riyals during last year is significantly lower.
The main reason behind the huge drop in net losses during the current period compared with the same period of the previous year is cost saving and much lower marketing and financial expenses.