Saudi Ground Services experienced impressive growth, reporting higher profits and revenue for the full year 2024. On Thursday afternoon, shares traded over 7% higher on the Saudi bourse, reflecting robust investor confidence in the company. This Saudi Arabia-based corporation, which specializes in providing ground-handling services to the aviation sector, recorded a staggering 54.6% year-over-year increase in net profit for the twelve months ending December 31, 2024, amounting to 327 million Saudi riyals compared to 211.5 million riyals the previous year. The company's gross profit also saw significant growth, soaring to 620.9 million riyals from 409 million riyals, primarily driven by enhanced productivity and streamlining of expenses.
Operating profit increased by an impressive 39.6%, reaching 318.6 million riyals. Revenue for the period stood at 2.68 billion riyals, marking a 9.2% rise from the prior year's figure of 2.46 billion riyals. This increase in revenue was largely attributed to the uptick in both domestic and international flights. Saudi Ground Services plays a pivotal role in the aviation industry, operating across 28 airports throughout the kingdom, with its four main hubs located in Riyadh, Jeddah, Dammam, and Medina as detailed on their website.
In addition to its impressive financial results, the company also noted a reduction in finance costs, which declined by 16.9 million riyals year-over-year, along with a decrease in zakat charges by 8.9 million riyals. However, it should be noted that administrative costs rose by 59.4 million riyals, and impairment losses on trade and other receivables also increased significantly by 71.4 million riyals. Notably, prominent airline companies such as Saudia and Flynas are among the esteemed clients that benefit from the services provided by Saudi Ground Services.
This successful financial year showcases the company’s strong position in a competitive market, evidencing its capability to adapt and thrive amidst changing dynamics in the aviation industry..