Riyadh – Mubasher: Fawaz Abdulaziz Al Hokair and Partners Company (Synomy Retail) turned to losses during 2023 on an annual basis.
According to the company’s financial statements, issued on the Tadawul website today, Sunday, net losses amounted to 1.11 billion riyals, compared to profits amounting to 36.9 million riyals during the year 2022.
The company attributed its turnaround to losses last year. Its results were affected by an amount of 772 million riyals, a non-recurring amount related to the exit of brands and the closure of stores, commercial goodwill and the decrease in the value of assets by an amount of 646 million riyals, the impact of the international exit by 92 million riyals, and recording a loss of 33 million riyals from the exit from the Mubarak Real Estate Fund (within the program Sales of non-core assets).
The company’s revenues/sales decreased by about 5.3% in 2023 to 5.23 billion riyals, compared to 5.53 billion riyals in the previous year.
The company’s total accumulated losses amounted to about 1.4 billion Saudi riyals as of December 31, 2023, representing 122.3% of the capital.
The company confirmed its commitment to the procedures and instructions issued by the Capital Market Authority for companies listed on Tadawul, indicating that it intends to call for an extraordinary general assembly; To discuss the proposals put forward to address the weakness of the capital structure.
Regarding the main reason that led to the accumulated losses, the company stated that the increase in the accumulated losses attributable to the company’s shareholders rose to 1.404 billion riyals as of December 31, 2023 AD; Due to recorded one-time charges amounting to 772 million riyals regarding the impact of portfolio improvement and operational losses during the period.
The company noted, in its statement, that the last day for the Board of Directors to publish its recommendations regarding the accumulated losses is May 28, 2024 AD, while the last day for the Board of Directors to publish the invitation to the Extraordinary General Assembly to consider the continuation of the company has been set for September 25, 2024 AD.
The procedures and instructions will be applied to companies whose shares are listed on the Saudi Stock Exchange and whose accumulated losses have reached 20% or more of their capital.
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2024-03-31 14:38:45
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