Retal H1 net profit up 20% to SAR 112.5 mln; Q2 at SAR 71 mln

Retal Urban Development Co. reported a net profit of SAR 112.5 million in H1 2023, an increase of 20% from SAR 93.5 million in the year-earlier period.

The profit increase was driven by a 42.4% growth in revenue to SAR 583 million compared to SAR 409.3 million a year ago, driven by a rise of 85.3% year-on-year (YoY) from development contracts.

Gross profit rose 30.2% YoY to SAR 153.9 million due to more under-development projects. In addition, Retal’s share in equity accounted investments rose to SAR 41.3 million in H1 2023, compared to SAR 9.2 million in H1 2022.

However, Retal reported higher general and administrative expenses, selling and marketing expenses and financing costs.

The company’s net profit surged 136.4% in Q2 2023 to SAR 71 million from SAR 30.03 million a year earlier, as revenue surged 96.3% YoY to SAR 263.4 million. Gross profit leapt 91.9% YoY. The company’s share in equity accounted investments grew to SAR 40.8 million in Q2 2023.

On a quarterly basis, net earnings rose by 70.9% from SAR 41.5 million in Q1 2023, backed by higher gross profit as well as lower selling and marketing expenses.  

Total shareholders’ equity, excluding minority interest, stood at SAR 726.85 million as of June 30, 2023, compared to SAR 662.4 million in a prior-year period. 

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