#Saudi retailer Fawaz Alhokair's Q1 profit drops on IFRS 16 impact | ZAWYA MENA Edition

Saudi retailer Fawaz Alhokair's Q1 profit drops on IFRS 16 impact | ZAWYA MENA Edition:

Saudi retailer Fawaz Abdulaziz Alhokair reported a 10.11 percent drop in Q1 net profit, ending June 30, 2019 as the implementation of a new accounting standard starting April 1 this year, resulted in the booking of an additional 26 million Saudi riyals in costs.

After the implementation of IFRS 16, the company’s Q1 2019 net profit after tax and zakat amounted to 224 million riyals, compared to 249.2 million riyals in Q1 2018. Excluding IFRS 16, the company’s Q1 2019 normalised net profit is at 249.5 million riyals.

The company’s revenue after IFRS 16 stood at 1.73 billion riyals in Q1 2019, compared to 1.85 billion riyals in Q1 2018.