Retal’s 2023 profit dips 18% to SAR 202.4M; Q4 at SAR 56.4M

Retal Urban Development Co. posted an 18% drop in its 2023 net profit to SAR 202.4 million, compared to SAR 245.7 million in 2022.

The annual net profit was hurt by a drop of 84% year-on-year (YoY) in revenues from sale of real estate units/land to SAR 59.42 million, despite an 83% YoY rise in revenues from development contracts to SAR 1.27 billion amid an increase in the number of ongoing projects, units sold and completion rates.

General and administrative expenses increased to SAR 87 million.

Selling and marketing expenses rose to SAR 47 million.

Retal also reported higher finance costs to SAR 99.85 million on higher SAIBOR rates.

On the other hand, the company’s full-year topline rose 23.5% YoY to SAR 1.36 billion, backed by an 83% YoY surge in revenues from development contracts.

Retal recorded its highest revenues on record since inception, thanks to development contracts amid the increased number of ongoing projects, sold units and completion rates, along with an increase in its profit share in equity accounted investments.

The fourth-quarter net profit dropped 10% to SAR 56.4 million from SAR 62.5 million in Q4 2022.

Compared to the previous quarter, the real estate developer’s profit jumped 68.6% from SAR 33.4 million in Q3 2023.

Total shareholders’ equity, after minority interest, increased to SAR 745.51 million as of Dec. 31, 2023, from SAR 734.41 million a year earlier.

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