Saudi Catering eyes entry into new sectors to balance revenue sources: CEO

Saudi Airlines Catering Co. plans to enter new sectors, such as healthcare, to create a balance in its sources of income, chief executive officer (CEO) Wajdi bin Mohammed Al-Ghabban told Argaam.

The company is working to increase its revenue by introducing new business solutions and reducing fixed and variable costs. This will help accelerate the pace of recovery for the travel and hospitality sector, in turn, reflecting on improved results amid signs of normal conditions, Al-Ghabban added.

The company was affected by the precautionary measures taken against COVID-19 in 2020, the CEO said, adding that the easing of these restrictions is expected to lead the company to gradually return to normal.

Since the beginning of the coronavirus outbreak, Saudi Catering worked to reduce fixed and variable costs. In addition, the stimulus packages approved by the government during 2020 also benefited the company, leading to the reduction of some losses, particularly, those related to employee expenses through the unemployment system SANID, Al-Ghabban added.

According to the data available in Argaam, the company recorded losses of SAR 334.7 million by the end of 2020, and losses of about SAR 100 million for Q4 2020.