Lumi’s Q1 2024 profit down 11% to SAR 44.7M

Lumi Rental Co. reported an 11% fall in the first-quarter net profit to SAR 44.7 million, compared to SAR 50.3 million in Q1 2023.

Cost of revenues increased significantly to SAR 271 million, a rise of 57% year-on-year (YoY), primarily due to the higher cost of vehicles sold.

Operating expenses grew 17% YoY to SAR 36 million, reflecting the company's continued investment in personnel, technology, and infrastructure to support future growth and maintain a competitive edge.

Financing costs saw a 2.6-fold increase to SAR 31 million, primarily due to increased borrowing to fund vehicle growth and elevated interest rates.

The profit decline came despite higher revenue across all business segments. Lease segment's revenue surged by 53% YoY, the rental segment expanded by 25% YoY, while the used car sales segment saw a 54% YoY increase, reaching SAR 142 million.

Sequentially, the first-quarter net profit climbed 74.4% from SAR 25.63 million in Q4 2023, on higher revenue and lower general and administrative expenses.

Total shareholders’ equity, no minority interest, rose to SAR 1.07 billion as of March 31, 2024, from SAR 893.86 million a year earlier.

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