Kinan International’s 9M net profit down 75% to SAR 70.7M; Q3 at SAR 2.5M

Kinan International Real Estate Development Co., which is preparing to list its shares on Nomu-Parallel Market, reported net earnings of SAR 70.7 million in the first nine months of 2023, a decline of 75% from SAR 286.9 million in the prior-year period.

This was driven by a revenue slump to SAR 261.8 million in the nine-month period, compared to SAR 596.89 million, due to lower revenue from selling under-construction units. The company also cited lower gross profit margins (GPMs) to 53% from 60% in the corresponding period, as cost of sales to revenue rose to 47%.

Meanwhile, operating margins decreased to 33%, and general and administrative expenses increased by 53% year-on-year (YoY). The company also reported SAR 9.5 million in gains from writing off investment properties in the previous period.

This was offset by an increase in financing revenue to SAR 10.8 million in the nine months, compared to SAR 1.9 million in the year-earlier period.

Q3 2023 net profit plummeted 95.4% YoY to SAR 2.46 million, on a decline in revenue to SAR 60.8 million, lower GPMs and decreased operating margins.

On a sequential basis, net profit grew 9.9%.

Shareholders’ equity, excluding minority interest, stood at SAR 1.74 billion by Sept. 30, 2023, compared to SAR 1.76 billion in the prior-year period.