|Element List||Current Year||Previous Year||%Change|
|Gross Profit (Loss)||606||307||97.394|
|Operational Profit (Loss)||-282||-534||-47.191|
|Net Profit (Loss) after Zakat and Tax||-378||11||–|
|Total Comprehensive Income||-421||9||–|
|Total Share Holders Equity (after Deducting Minority Equity)||5,475||5,877||-6.84|
|Profit (Loss) per Share||-1.25||0.06|
|All figures are in (Millions) Saudi Arabia, Riyals|
|The reason of the increase (decrease) in the net profit during the current year compared to the last year is||SEERA GROUP REPORTS 47% REVENUE INCREASE FOR THE YEAR 2021
DRIVEN BY STRONG THIRD AND FOURTH QUARTER RECOVERY
2021 was marked by the partial resumption of international travel and strong continuation of domestic travel popularity as Seera Group has seen financial growth across the vast majority of its portfolio verticals, a positive uplift from 2020, predominantly during the second half of 2021.
The Group’s gross booking value, net of refunds (GBV) increased by 30% for the year 2021 to SAR 4.8 billion vs. SAR 3.7 Billion FY 2020 which was a testament to the combined efforts of international governments and the travel ecosystem on the road to recovery post-pandemic. Q4 2021 showed a particularly positive trend on revenue with recovery relative to 2020 greater than 114% for SAR 487 million in Q4 2021 vs. SAR 228 million in Q4 2020. The growth is driven largely by partial opening of KSA borders for international travel for vaccinated citizens and residents which allowed for the resumption of travel across borders, relaxed quarantine requirements and easing of restrictions on entry and entertainment & leisure activities.
Seera’s Car Rental unit, Lumi, has continued its positive trajectory from 2020, as the unit’s revenue has grown 20% from SAR 423 million in 2020 to SAR 507 million, fuelled by the launch of a state-of-the-art mobile app and large-scale leasing contracts secured.
As part of Seera’s efforts to streamline operations for scalability and performance, the Consumer Travel and Business Travel businesses were merged under one unit at the end of 2021, to realize efficiencies and leverage the strength of the Almosafer brand equity & platform.
With reopening of borders, Seera’s travel businesses under Almosafer have experienced steady recovery throughout 2021, achieving 42% growth of SAR 3.4 billion in 2021 vs. SAR 2.4 billion in 2020 , with a distinctly strong Q4 consumer segment showcasing GBV that has surpassed 2020 numbers as overall. The Consumer Business grew 64% from SAR 1.1 billion in 2020 to SAR 1.8 billion in GBV by end of 2021 , as a result of its successful omni-channel strategy, digital enhancements and further gain of market share. Almosafer Business (formerly elaa), the Group’s Corporate & Government Travel Management Business, grew at a stable rate of 23% from SAR 1.3 billion in 2020 to SAR 1.6 billion in 2021 as the business continues to retain some of the largest and most prestigious clients in the government and semi-government sectors.
Discover Saudi, Seera’s integrated DMC recorded a GBV of SAR 71 million, as the destination management company established itself as a major MICE player in Saudi Arabia and provided transport and accommodation services to large-scale events such as the 2021 Dakar Rally in KSA. The DMC also further continued to promote Saudi Arabia as a tourism destination globally.
Seera’s Hospitality unit yielded revenue of SAR 41 million representing a 24% drop from the previous year due to partial closure of commercial operation in pilgrim-focused properties as a result of COVID-19 and slow recovery of religious travel. As master developer of Choice Properties in the ME, we continue to expand the Group’s hospitality footprint nation-wide in tandem with the Kingdom’s efforts to promote tourism, primarily in the mid-market and upper mid-market segments. The Hospitality Business has also launched two Choice branded hotels in Jeddah in 2021, with recently signed Clarion Al Baha Resort in cooperation with the Tourism Development Fund (TDF), Ministry of Municipal and Rural Affairs (MOMRAH) and Al Baha Municipality, a unique landmark project currently under development.
The Group’s Corporate Ventures unit posted a GBV of SAR 776 million, a growth of 5% as compared to 2020, due to the impact of COVID-19 and pro-longed restrictions in the UK market, home base of our largest investment, the Portman Travel Group.
Group REVENUE and NET PROFIT
Group Revenue improved by 47% in 2021 vs. 2020 driven by the partial resumption of travel across borders, relaxed quarantine requirements and easing of restrictions on entry and entertainment & leisure activities.
Net loss after zakat The company generated a net loss after zakat (before non controlling interest) of SAR 378 million as compared to net profit after zakat (before non controlling interest) of SAR 11 million during the previous year primarily due to exceptional gain on sale from Careem Investment in 2020. Profits in 2021 are depressed due to lower volumes as a result of COVID-19 travel restrictions.
Net loss after non controlling interest The company generated a net loss after non controlling interest of SAR 376 million as compared to net profit of SAR 18 million during the previous year, primarily due to exceptional gain on sale from Careem Investment in 2020. Profits in 2021 are depressed due to lower volumes as a result of COVID-19 travel restrictions.
Excluding the impact of below exceptional items, the company achieved normalized net loss of SAR 409 million for the year 2021 (2020: net loss of SAR 599 million) with a decrease of 32% in losses as compared to 2020.
Portion of gain recorded in current year on disposal of investment is SAR NIL (2020: 1.573 billion)
Impairment losses amounting to SAR NIL (2020: SAR 956 million)
Recognized other income from Careem Holdback of SAR 68.5 million (2020: SAR NIL)
Additional zakat provision during the current year SAR 35 million (2020: SAR NIL)
|Statement of the type of external auditor’s report||Unmodified opinion|
|Reclassification of Comparison Items||Certain comparative figures are reclassified to conform current year classification|
|Additional Information||COVID-19 assessment
In response to the spread of the Covid-19 in GCC and other territories where the Group operates and its resulting disruptions to the social and economic activities in those markets over the last two years, management continues to proactively assess its impacts on its operations. In particular the Group is closely monitoring the current surge in cases due to the outbreak of a new variant – Omicron. The preventive measures taken by the Group in April 2020 are still in effect including the creation of ongoing crisis management teams and processes.
The extent to which the pandemic impacts Group’s business and operations is ascertainable but the financial impact over the next 12 months cannot be measured reliably as it depends on various factors and future developments, that the Group may currently not be able to estimate reliably. These factors include virus transmission rate, duration of the outbreak or vaccination of significant percentage of population, advent of subsequent waves of the virus, etc. and the resulting precautionary actions that may be taken by the authorities to control spread of the virus and impact of such measures on economic activities and Company’s customers.
Considering the challenges of the uncertainty around the extent and duration of business and economic impact, management is monitoring the situation with a continued focus on ensuring employees’ safety and maintenance of sufficient liquidity. This assessment has taken in to account the current measures being put in place by the Group to preserve cash by reducing the planned capital expenditure during the period of closure and reductions in certain operating expenses to improve the liquidity.
The Group is confident that it has in place robust policies, operational expertise, and financial resources and cushions to enable it to meet the challenges in the current environment. In light of the above, the Group concluded the following:
Management believes that the above will not affect the Group’s ability to continue as a going concern. Therefore, these consolidated financial statements have been prepared under the going concern concept
The key sources of estimation uncertainties remain similar to those disclosed in the last annual financial statements.
As the situation is rapidly evolving with future uncertainties, the Company will continue to evaluate the nature and extent of the impact on its business and financial results and performance.
Certain comparative figures are reclassified to conform to current year classification.
1 The revenue for the current year is SAR 1,328 million as compared to SAR 904 million during the previous year showing an increase of 47%.
2 The gross profit for the current year is SAR 606 million as compared to SAR 307 million during the previous year with an increase of 97%.
3 The operating loss for the current year is SAR 282 million as compared to operating loss of SAR 534 million for the previous year with a decline of 47%.
4 The net loss after zakat and tax before non controlling interest for the current year is SAR 378 million as compared to net profit after zakat and tax before non controlling interest of SAR 11 million for the previous year.
The net loss after non controlling interest for the current year is SAR 376 million as compared to net profit after non controlling interest of SAR 18 million for the previous year .
5 The total comprehensive loss for the current year before non controlling interest is SAR 421 million as compared to total comprehensive income of SAR 9 million for the previous year. The total comprehensive loss after non controlling interest for the current year is SAR 419 million as compared to total comprehensive income of SAR 17 million for the previous year .
6 Loss per share for the current year is SR 1.25 as compared to earnings per share of SR 0.06 for the previous year.
7 The shareholders equity (without non controlling interest) as at the end of the current year is SAR 5,475 million as compared to SAR 5,877 million in the previous year (without minority interest) decreased by 6.8%.