Theeb’s profit edges up to SAR 42.3 mln in Q1 2023

Theeb Rent a Car Co. (Theeb) reported a marginal rise in Q1 2023 net profit to SAR 42.3 million, compared to SAR 42.6 million in the prior-year period.

The company cited weak performance of the short-term rentals segment, on a partial seasonal change due to the beginning of the holy month of Ramadan in the first quarter of 2023, when the economic activity slowed down.

This was offset by the improved performance of the long-term leasing and vehicle sales segments, which continued to show impressive growth in revenues and margins.

Compared to Q4 2022, the first-quarter net profit dropped 21.2% from SAR 53.66 million, hurt by the weak performance of the short-term rentals segment during Ramadan.

Further, contributions from the car sales segment were higher in the fourth quarter of 2022 compared to Q1 2023, as the company sold a smaller fleet in order to open three new branches for the short-term segment, in addition to preparing for the blessed Eid Al-Fitr season.

Shareholders’ equity, no minority interest, rose to SAR 681.78 million as of March 31, 2023, from SAR 586.73 million a year earlier.

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