Saudi Airlines Catering Co. posted an 8.27 per cent drop in net profit after zakat and tax for the first half of 2019 compared to the same period last year.
The company’s profit fell to 220.6 nillion Saudi riyals compared to 240.4 million riyals for H1 2018.
It attributed the drop to the adoption of the accounting standard IFRS 16 from January, which it said “substantially increased” its interest costs.
IFRS 16 reports information for lease transactions that requires lessees to recognise assets and liabilities for all leases with a term of more than twelve months.
The company’s revenue rose 6.8 per cent to reach 1.07 billion riyals for H1 compared to the same period in 2018.
Saudi Airlines Catering in July won the contract to provide food and beverage services to the Haramain High Speed Railway Carriages and Cafeteria.
($1 = 3.75 Saudi riyals)
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