Riyadh - Mubasher: Pan Group Holding Company (Pan) turned profitable in 2024, compared to a loss incurred in 2023.

The company stated in a statement on Tadawul today, Monday, that net profit after zakat and tax amounted to approximately 5.2 million riyals, compared to a loss of 89.82 million riyals in 2023.

The company's accumulated losses amounted to approximately 109.01 million riyals, representing approximately 34.6% of total capital.

The company stated that the primary reason for its return to profitability is the implementation of the group's transformation strategy, which led to improved occupancy rates and average room rates across the hotel sector, particularly in the Riyadh region, during the first and fourth quarters of 2024. The company also noted the completion of development and renovation work on two major entertainment centers in Riyadh and Jeddah, in addition to the opening of a new entertainment center in Jeddah.

Operating profit also increased to SAR 62 million, compared to an operating loss of SAR 1.90 million last year. This was primarily due to the disposal of several loss-making hotels and entertainment centers, a decrease in direct costs resulting from increased operational efficiency, and a decrease in depreciation expenses resulting from adjusting the useful lives of certain asset classes during the third quarter of 2023. Furthermore, administrative and general expenses decreased due to effective expense management. Furthermore, the group worked to collect old debts amounting to SAR 12.70 million and refunded their provisions. The group also refunded provisions for impairment of assets in the hotel sector amounting to SAR 5.44 million, due to improved business and expected cash flows for these hotels. Furthermore, the company received insurance compensation worth approximately SAR 24.80 million for damages to one of its hotels and one of its entertainment centers.

This is in addition to an increase in the company's share of joint ventures by SAR 10.72 million, as a result of the improvement in the results of these projects.