Riyal profit slips 15% to SAR 19.1 mln in 2022

Riyal Investment & Development Co., slated to list on Nomu-Parallel Market, posted a SAR 19.1 million net profit for 2022, a decline of 15% from SAR 22.4 million in 2021, according to a statement to Tadawul.

The year-on-year (YoY) profit slump was due to a drop in gross profit margin to 23% in 2022 from 36% in 2021, as well as the fall in operating profit margin from 26% in 2021 to 16% in 2022 amid a 120% YoY uptick in selling and distribution expenses. Besides, general and administrative expenses grew by 33% YoY.

Moreover, financing costs increased from SAR 6.3 million in 2021 to SAR 14.6 million last year.

Earnings tumbled YoY in 2022 despite revenues jumping to SAR 189.6 million, against SAR 103.4 million in the year before, as car sales revenues and rental income climbed to SAR 68 million and SAR 18 million, respectively.

Shareholders' equity (with no minority interest) amounted to SAR 133.62 million by the end of 2022, compared to SAR 114.43 million a year earlier.

The company’s 2022 earnings before interest, taxes, depreciation and amortization (EBITDA) stood at SAR 56.87 million, versus SAR 45.38 million in 2021.