Riyadh – Mubasher: Makkah Construction and Development Company reported a 16.6% year-on-year decline in its net profits for the fiscal year 2019.
Net profits after Zakat and taxes slid to SAR 236 million last year, compared to SAR 283 million in 2018, the company said in a bourse disclosure on Thursday.
Meanwhile, the Saudi firm’s revenues went down to SAR 477 million in 2019 from SAR 549 million in the previous year.
The profit drop is ascribed to lower revenues and room occupancy rates for hotel and towers with the decrease in the number of visitors, along with an increase in the credit losses provisions.
In addition, the company’s board of directors recommended a cash dividend distribution of SAR 247.2 million or 15% of the company’s share capital for 2019.
It is worth mentioning that during the first nine months of 2019, Makkah Construction and Development Company’s net profits fell to SAR 209 million from SAR 198 million in the year-ago period.
