Kingdom Holding reports profit of SAR 1.01B in 2023; Q4 at SAR 157.1M

Kingdom Holding reports profit of SAR 1.01B in 2023; Q4 at SAR 157.1M

26/03/2024 Argaam Exclusive

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Kingdom Holding Co. (KHC) posted a net profit of SAR 1.01 billion for 2023, compared with SAR 6.95 billion a year earlier.



Financials (M)

Item 2022 2023 Change‬
Revenues 1,460.65 1,592.72 9.0 %
Gross Income 559.05 408.85 (26.9 %)
Operating Income 120.86 (108.23) (189.6 %)
Net Income 6,957.87 1,013.24 (85.4 %)
Average Shares 3,705.88 3,705.88 -
EPS (Riyals) 1.88 0.27 (85.4 %)

The profit decline was primarily due to one-off gain from the sale of 50% of the company's stake in Four Seasons Holdings (partial sale of its stake in equity accounted investee) in 2022 and no such gain was recognized in 2023.

 

The company also cited an increase in financial charges, higher hotels and other operating costs, as well as an increase in general, administrative, and marketing expenses, in addition to a decrease in dividend income.

 

This was despite an increase in other gains, higher share of results from equity-accounted investees, increase in hotels and other operating revenues, and growth in gain on investments at FVTPL. This was in addition to a decrease in Zakat charges, an increase in reversal/impairment of financial assets, a decline in withholding and income tax, as well as higher finance income.

 

KHC reported a net profit of SAR 157.1 million for Q4 2023, down 37% from SAR 250.3 million a year earlier.

 

On a sequential basis, Q4 2023 net profit fell 59.8% from SAR 391.18 million.



Current Quarter Comparison (M)

Compared With The
Item Q4 2022 Q4 2023 Change‬
Revenues 429.77 447.40 4.1 %
Gross Income 174.46 (2.74) (101.6 %)
Operating Income 52.56 (186.99) (455.8 %)
Net Income 250.30 157.07 (37.2 %)
Average Shares 3,705.88 3,705.88 -
EPS (Riyals) 0.07 0.04 (37.2 %)

Shareholders’ equity, after minority interest, increased to SAR 35.17 billion at the end of 2023, from SAR 30.72 billion a year earlier.



Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
Q1 2014 512.95 3.4 % 180.51 9.1 % 22.36 3089.3 %
Q2 2014 586.03 7.9 % 220.34 15.5 % 55.07 135.1 %
Q3 2014 475.57 (2.9 %) 156.82 (4.1 %) 7.84 (45.5 %)
Q4 2014 553.95 15.4 % 171.75 2.4 % (17.67) 56.1 %
Q1 2015 453.29 (11.6 %) 132.44 (26.6 %) (11.48) (151.3 %)
Q2 2015 502.82 (14.2 %) 166.81 (24.3 %) 25.94 (52.9 %)
Q3 2015 481.76 1.3 % 176.13 12.3 % 16.66 112.6 %
Q4 2015 441.89 (20.2 %) 150.54 (12.4 %) 10.21 157.8 %
Q1 2016 462.92 2.1 % 96.92 (26.8 %) 38.00 430.9 %
Q2 2016 432.99 (13.9 %) 105.97 (36.5 %) 9.77 (62.3 %)
Q3 2016 427.27 (11.3 %) 86.94 (50.6 %) 2.31 (86.2 %)
Q4 2016 481.14 8.9 % 88.04 (41.5 %) 7.93 (22.3 %)
Q1 2017 387.79 (16.2 %) 80.67 (16.8 %) 16.48 (56.6 %)
Q2 2017 445.29 2.8 % 109.25 3.1 % 8.82 (9.7 %)
Q3 2017 512.41 19.9 % 137.94 58.7 % (107.44) (4761.2 %)
Q4 2017 385.00 (20.0 %) 120.39 36.7 % (23.42) (395.2 %)
Q1 2018 475.50 22.6 % 124.22 54.0 % 50.73 207.9 %
Q2 2018 487.44 9.5 % 121.18 10.9 % (63.38) (818.3 %)
Q3 2018 433.24 (15.5 %) 152.44 10.5 % 45.22 142.1 %
Q4 2018 547.74 42.3 % 203.76 69.3 % 183.41 883.2 %
Q1 2019 411.67 (13.4 %) 109.64 (11.7 %) (72.75) (243.4 %)
Q2 2019 413.03 (15.3 %) 176.13 45.3 % 36.65 157.8 %
Q3 2019 432.36 (0.2 %) 118.74 (22.1 %) 62.89 39.1 %
Q4 2019 449.64 (17.9 %) 192.14 (5.7 %) 75.61 (58.8 %)
Q1 2020 333.47 (19.0 %) 71.69 (34.6 %) (32.81) 54.9 %
Q2 2020 126.69 (69.3 %) (18.36) (110.4 %) (88.27) (340.8 %)
Q3 2020 183.66 (57.5 %) (8.06) (106.8 %) (62.46) (199.3 %)
Q4 2020 116.69 (74.0 %) 161.92 (15.7 %) (186.01) (346.0 %)
Q1 2021 104.32 (68.7 %) (6.85) (109.6 %) (62.55) (90.7 %)
Q2 2021 167.91 32.5 % 44.19 340.7 % (5.98) 93.2 %
Q3 2021 261.65 42.5 % 77.75 1064.7 % 9.86 115.8 %
Q4 2021 393.57 237.3 % 182.09 12.5 % (24.83) 86.7 %
Q1 2022 318.31 205.1 % 118.51 1829.4 % 0.63 101.0 %
Q2 2022 354.20 111.0 % 123.30 179.0 % 21.55 460.7 %
Q3 2022 358.37 37.0 % 142.78 83.6 % 46.12 367.8 %
Q4 2022 429.77 9.2 % 174.46 (4.2 %) 52.56 311.7 %
Q1 2023 360.88 13.4 % 116.49 (1.7 %) (2.57) (507.9 %)
Q2 2023 404.25 14.1 % 159.44 29.3 % 45.34 110.4 %
Q3 2023 608.18 69.7 % 363.64 154.7 % 823.13 1684.8 %
Q4 2023 447.40 4.1 % (2.74) (101.6 %) (186.99) (455.8 %)
2023 1,592.72 9.0 % 408.85 (26.9 %) (108.23) (189.6 %)


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
Q1 2014 126.39 14.8 % 0.03 - 126.39 0.03
Q2 2014 211.68 16.8 % 0.06 - 211.68 0.06
Q3 2014 265.00 20.5 % 0.07 - 265.00 0.07
Q4 2014 266.00 15.0 % 0.07 - 266.00 0.07
Q1 2015 139.38 10.3 % 0.04 - 139.38 0.04
Q2 2015 238.30 12.6 % 0.06 - 238.30 0.06
Q3 2015 291.55 10.0 % 0.08 - 291.55 0.08
Q4 2015 37.91 (85.7 %) 0.01 (370.00) 407.91 0.11
Q1 2016 114.52 (17.8 %) 0.03 - 114.52 0.03
Q2 2016 (79.98) (133.6 %) (0.02) - (79.98) (0.02)
Q3 2016 (354.96) (221.7 %) (0.10) (233.78) (121.18) (0.03)
Q4 2016 (29.56) (178.0 %) (0.01) - (29.56) (0.01)
Q1 2017 129.09 12.7 % 0.03 234.83 (105.74) (0.03)
Q2 2017 216.30 370.5 % 0.06 203.58 12.72 0.00
Q3 2017 247.54 169.7 % 0.07 529.96 (282.42) (0.08)
Q4 2017 70.63 338.9 % 0.02 - 70.63 0.02
Q1 2018 143.04 10.8 % 0.04 (63.75) 206.79 0.06
Q2 2018 242.67 12.2 % 0.07 (375.67) 618.34 0.17
Q3 2018 248.55 0.4 % 0.07 196.37 52.18 0.01
Q4 2018 47.37 (32.9 %) 0.01 (88.43) 135.80 0.04
Q1 2019 244.16 70.7 % 0.07 (122.84) 367.00 0.10
Q2 2019 143.60 (40.8 %) 0.04 (14.60) 158.20 0.04
Q3 2019 86.80 (65.1 %) 0.02 80.00 6.80 0.00
Q4 2019 18.36 (61.2 %) 0.00 (42.70) 61.06 0.02
Q1 2020 (50.11) (120.5 %) (0.01) - (50.11) (0.01)
Q2 2020 (1126.76) (884.7 %) (0.30) (500.00) (626.76) (0.17)
Q3 2020 (192.73) (322.0 %) (0.05) - (192.73) (0.05)
Q4 2020 (97.20) (629.3 %) (0.03) 266.03 (363.24) (0.10)
Q1 2021 91.06 281.7 % 0.02 - 91.06 0.02
Q2 2021 412.25 136.6 % 0.11 - 412.25 0.11
Q3 2021 108.69 156.4 % 0.03 - 108.69 0.03
Q4 2021 405.43 517.1 % 0.11 - 405.43 0.11
Q1 2022 5,925.62 6407.4 % 1.60 5,873.91 51.71 0.01
Q2 2022 427.15 3.6 % 0.12 - 427.15 0.12
Q3 2022 354.80 226.4 % 0.10 - 354.80 0.10
Q4 2022 250.30 (38.3 %) 0.07 - 250.30 0.07
Q1 2023 171.07 (97.1 %) 0.05 - 171.07 0.05
Q2 2023 293.93 (31.2 %) 0.08 - 293.93 0.08
Q3 2023 391.18 10.3 % 0.11 114.02 277.15 0.07
Q4 2023 157.07 (37.2 %) 0.04 140.51 16.56 0.00
2023 1,013.24 (85.4 %) 0.27 254.53 758.71 0.20

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2014 34.68 % 12.76 % 37.46 %
Q2 2014 35.39 % 13.99 % 38.15 %
Q3 2014 35.31 % 13.80 % 40.60 %
Q4 2014 34.27 % 15.41 % 40.83 %
Q1 2015 32.93 % 13.70 % 42.64 %
Q2 2015 31.62 % 12.55 % 45.76 %
Q3 2015 32.49 % 12.25 % 46.95 %
Q4 2015 33.30 % 11.72 % 57.30 %
Q1 2016 31.25 % 14.08 % 55.69 %
Q2 2016 29.10 % 13.44 % 40.34 %
Q3 2016 24.95 % 13.80 % 18.20 %
Q4 2016 20.94 % 14.93 % (6.44 %)
Q1 2017 20.91 % 15.20 % (19.46 %)
Q2 2017 20.95 % 17.89 % (14.00 %)
Q3 2017 22.77 % 10.40 % (22.17 %)
Q4 2017 25.90 % 5.55 % (17.61 %)
Q1 2018 27.05 % 8.13 % 0.43 %
Q2 2018 27.08 % 0.43 % 32.97 %
Q3 2018 29.09 % 9.86 % 53.22 %
Q4 2018 30.95 % 23.44 % 52.12 %
Q1 2019 31.22 % 17.56 % 62.41 %
Q2 2019 35.55 % 23.30 % 39.50 %
Q3 2019 33.70 % 23.13 % 37.00 %
Q4 2019 34.96 % 16.08 % 34.75 %
Q1 2020 34.31 % 17.21 % 10.80 %
Q2 2020 27.14 % 13.20 % (45.38 %)
Q3 2020 21.71 % 6.54 % (73.94 %)
Q4 2020 27.24 % (28.05 %) (162.11 %)
Q1 2021 24.21 % (47.45 %) (205.45 %)
Q2 2021 33.39 % (30.70 %) (9.20 %)
Q3 2021 42.58 % (20.35 %) 38.24 %
Q4 2021 32.04 % 4.64 % 109.70 %
Q1 2022 37.02 % 9.50 % 85.69 %
Q2 2022 37.78 % 10.97 % 74.79 %
Q3 2022 39.78 % 12.43 % 86.99 %
Q4 2022 38.27 % 21.82 % 74.21 %
Q1 2023 37.06 % 21.49 % 80.05 %
Q2 2023 38.19 % 22.47 % 68.89 %
Q3 2023 45.15 % 63.14 % 55.04 %
Q4 2023 34.98 % 57.53 % 41.67 %
2023 25.67 % 16.35 % 47.64 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2014 3,705.88 0.20 0.20 8.08
Q2 2014 3,705.88 0.21 0.21 8.55
Q3 2014 3,705.88 0.23 0.23 8.71
Q4 2014 3,705.88 0.23 0.23 8.70
Q1 2015 3,705.88 0.24 0.24 8.32
Q2 2015 3,705.88 0.25 0.25 8.40
Q3 2015 3,705.88 0.25 0.25 7.76
Q4 2015 3,705.88 0.19 0.29 7.72
Q1 2016 3,705.88 0.18 0.28 7.15
Q2 2016 3,705.88 0.10 0.20 7.15
Q3 2016 3,705.88 (0.08) 0.09 7.32
Q4 2016 3,705.88 (0.09) (0.03) 7.62
Q1 2017 3,705.88 (0.09) (0.09) 7.73
Q2 2017 3,705.88 (0.01) (0.07) 8.00
Q3 2017 3,705.88 0.15 (0.11) 8.30
Q4 2017 3,705.88 0.18 (0.08) 8.51
Q1 2018 3,705.88 0.18 0.00 8.29
Q2 2018 3,705.88 0.19 0.17 8.37
Q3 2018 3,705.88 0.19 0.26 8.32
Q4 2018 3,705.88 0.18 0.27 7.54
Q1 2019 3,705.88 0.21 0.32 7.91
Q2 2019 3,705.88 0.18 0.19 8.18
Q3 2019 3,705.88 0.14 0.18 8.12
Q4 2019 3,705.88 0.13 0.16 8.49
Q1 2020 3,705.88 0.05 0.05 7.12
Q2 2020 3,705.88 (0.29) (0.16) 7.42
Q3 2020 3,705.88 (0.36) (0.22) 7.36
Q4 2020 3,705.88 (0.40) (0.33) 8.31
Q1 2021 3,705.88 (0.36) (0.29) 8.73
Q2 2021 3,705.88 0.06 (0.01) 8.83
Q3 2021 3,705.88 0.14 0.07 8.77
Q4 2021 3,705.88 0.27 0.27 8.34
Q1 2022 3,705.88 1.85 0.26 8.93
Q2 2022 3,705.88 1.85 0.27 8.80
Q3 2022 3,705.88 1.92 0.33 7.77
Q4 2022 3,705.88 1.88 0.29 8.29
Q1 2023 3,705.88 0.32 0.32 8.71
Q2 2023 3,705.88 0.29 0.29 8.44
Q3 2023 3,705.88 0.30 0.27 8.35
Q4 2023 3,705.88 0.27 0.20 9.49

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2014 More than 100 More than 100 2.78
Q2 2014 More than 100 More than 100 2.82
Q3 2014 More than 100 More than 100 2.74
Q4 2014 77.18 77.18 2.08
Q1 2015 85.20 85.20 2.44
Q2 2015 89.56 89.56 2.61
Q3 2015 71.37 71.37 2.32
Q4 2015 82.80 54.36 2.05
Q1 2016 64.91 42.08 1.67
Q2 2016 More than 100 56.09 1.55
Q3 2016 NEG More than 100 1.40
Q4 2016 NEG NEG 1.58
Q1 2017 NEG NEG 1.39
Q2 2017 NEG NEG 1.23
Q3 2017 69.20 NEG 1.27
Q4 2017 49.93 NEG 1.05
Q1 2018 49.34 More than 100 1.09
Q2 2018 45.86 52.63 1.04
Q3 2018 45.21 33.62 1.03
Q4 2018 42.41 28.53 1.03
Q1 2019 41.43 27.64 1.11
Q2 2019 42.28 40.53 0.95
Q3 2019 55.45 43.34 0.96
Q4 2019 56.76 47.18 0.89
Q1 2020 More than 100 More than 100 0.89
Q2 2020 NEG NEG 0.92
Q3 2020 NEG NEG 1.12
Q4 2020 NEG NEG 0.96
Q1 2021 NEG NEG 0.92
Q2 2021 More than 100 NEG 1.18
Q3 2021 77.17 More than 100 1.22
Q4 2021 36.79 36.79 1.21
Q1 2022 5.38 37.70 1.11
Q2 2022 4.97 34.34 1.05
Q3 2022 4.47 25.66 1.10
Q4 2022 4.12 26.46 0.93
Q1 2023 24.11 24.11 0.90
Q2 2023 27.08 27.08 0.93
Q3 2023 23.88 26.62 0.85
Q4 2023 26.15 34.92 0.75

Business Segments (Million)

Compared With The
Period Intellectual Property Investments Operating Hotels Real Estate Other segments Health Care Sector
Q1 2014 295.66 291.02 154.43 - -
Q2 2014 279.22 436.26 181.46 - -
Q3 2014 169.73 499.83 143.34 - -
Q4 2014 298.68 475.93 172.32 - -
Q1 2015 242.57 252.61 219.81 - -
Q2 2015 235.31 395.99 199.26 - -
Q3 2015 362.25 379.66 123.24 - -
Q4 2015 498.17 286.48 296.75 - -
Q1 2016 173.06 316.21 - 39.04 112.17
Q2 2016 35.28 295.41 - 29.28 103.81
Q3 2016 - 358.23 - 31.56 37.47
Q4 2016 (481.32) 365.49 - 22.76 94.56
Q1 2017 274.13 279.17 - 25.24 83.38
Q2 2017 94.89 324.40 16.31 24.39 80.19
Q3 2017 37.97 326.63 88.72 22.14 74.93
Q4 2017 218.51 144.28 130.79 22.80 87.14
Q1 2018 37.55 255.51 119.19 23.60 77.20
Q2 2018 344.50 279.09 113.05 24.42 70.89
Q3 2018 48.36 239.32 98.14 24.33 71.45
Q4 2018 212.81 333.14 115.31 22.59 76.70
Q1 2019 517.42 204.55 111.65 21.13 74.34
Q2 2019 50.53 206.14 112.24 21.00 73.65
Q3 2019 (384.77) 255.13 85.94 24.22 67.07
Q1 2020 57.29 150.58 98.81 20.48 70.78
Q2 2020 94.98 2.09 53.86 13.36 50.15
Q3 2020 116.71 9.99 56.50 27.64 89.60
Q1 2021 70.57 18.49 69.24 16.58 -
Q2 2021 253.55 71.40 80.51 15.99 -
Q3 2021 76.63 187.16 59.35 15.14 -
Q4 2021 180.16 249.88 128.70 15.00 -
Q1 2022 131.73 171.64 128.39 18.28 -
Q2 2022 415.28 237.23 98.61 18.36 -
Q3 2022 286.45 252.57 92.55 17.74 -
Q4 2022 189.76 262.94 151.78 18.82 -
Q1 2023 309.37 198.20 143.54 21.02 -
Q2 2023 291.34 261.65 119.83 20.89 -
Q3 2023 227.99 254.65 104.61 20.94 -
Q4 2023 142.62 253.52 312.27 20.95 -

Current
Market Cap (M Riyal) 34,872.35
Enterprise Value (EV) (M) 47,889.89
Shares Outstanding ((M)) 3,705.88
EPS ( Riyal) (TTM) 0.36
Book Value (BV) ( Riyal) 10.13
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 32.88
P/E (TTM) 26.33
Price/book 0.93
Return on Average Assets (%) (TTM) 2.5
Return on Average Equity (%) (TTM) 3.9

Share Price

9.41
(0.19) (1.98 %)

Kingdom Holding Co. (KINGDOM)


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