Riyadh Development profit down 77% to SAR 32.4 mln in Q1 2023

Riyadh development Co.’s net profit slumped 77% to SAR 32.4 million in Q1 2023 from SAR 139 million a year earlier.

The profit decline is attributed to a 100% decline in income from Tanal Co., an associate company, which decided to hold off sales to evaluate the optimal use of the remaining plots estimated at 392,000 square meters. The company's share in these plots is 275,000 square meters.

During the three-month period, revenue costs increased due to a provision for meat market rent and attracting qualified team in the operational segments as per the board of directors approved plan.

General and administrative expenses increased after booking a provision for receivables, as well as consulting expenses for institutional development and the recruitment of a qualified team.

Similarly, Zakat expenses increased year-on-year (YoY).

The company also noted an increase in operating revenue of its centers and markets by 13% due to increased occupancy rate, and the re-pricing of some services. In addition, the revenue of the acquired office building in Al Malqa was added to the operating revenue.

The profit of Islamic Murabaha deposits increased by 140% YoY due to increase in interest rates and the volume of invested Murabaha deposits.

Sequentially, the company’s net profit fell 16.1% from SAR 38.63 million in Q4 2022.

Total shareholders’ equity, no minority interest, stood at SAR 2.23 billion as of March 31, 2023, compared to SAR 2.16 billion a year earlier.

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