Retal’s 9M 2023 profit drops 20% to SAR 146 mln; Q3 at SAR 33.4 mln

Retal Urban Development Co. reported a 20% fall in net profit to SAR 146 million in the first nine months of 2023, compared to SAR 183.2 million in the year-earlier period.

The company reported a year-on-year (YoY) decrease of 87.4% in revenues from the sale of real estate units/lands to SAR 41.67 million in the nine-month period. This was despite the surge in revenues from development contracts by 87.6% YoY to SAR 838.96 million, driven by the higher number of ongoing projects.

General and administrative (G&A) expenses increased by 63.3% YoY to SAR 60.68 million during the first nine months of 2023, on the back of the development in the company’s administrative structure, and in order to accommodate the strategic growth plans.

Further, selling and marketing expenses rose 66% YoY to SAR 23.54 million during the same period. Finance costs (FCs) also leapt by 245.4% YoY to SAR 58.27 million amid high interest rates and increased indebtedness.

In Q3 2023, net profit plunged 63% to SAR 33.4 million, compared to SAR 89.7 million in Q3 2022, as revenue dropped by 17.3% YoY to SAR 335.9 million.

This is besides a 61.6% YoY rise in selling and marketing expenses to SAR 9.17 million during the quarter. FCs also leapt by 265.6% YoY to SAR 26.97 million in Q3 2023.

Net profit tumbled 52.9% from SAR 71 million in Q2 2023, despite a 27.6% quarter-on-quarter (QoQ) surge in the company’s top line as revenues from development contracts increased by 40.8% to SAR 320.84 million.

Total shareholders’ equity, after minority interest, increased to SAR 688.55 million as of Sept. 30, 2023, from SAR 671.72 million a year earlier.

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