Theeb H1 2023 earnings dip 16% to SAR 72.2 mln; Q2 at SAR 29.9 mln

Theeb Rent a Car Co. reported a net profit of SAR 72.2 million in H1 2023, down 16% from SAR 85.7 million in the year-earlier period.

The profit decline was attributed to a decrease in the utilization rate of the short-term leasing segment, an increase in financing costs and operating expenses, especially auto insurance and spare parts costs.

This came despite the rise in revenues from the car sales segment of 93% as a result of the growth in the company’s fleet.

The company reported a net profit of SAR 29.92 million in Q2 2023, down 30.5% from SAR 43.06 million in the year before. This was despite an increase in revenues of the short- and long-term leasing sector by 8.2% during the quarter, coupled with a 120.4% year-on-year (YoY) uptick in the car sales sector’s revenues and the YoY expansion in Theeb's car fleet.

On a quarterly basis, Q2 net earnings fell 29.3% from SAR 42.29 million as the short-term rental segment’s operating rates dropped due to the extension of the holy month of Ramadan in the second quarter of 2023.

Total shareholders’ equity, after excluding minority interest, stood at SAR 690.63 million as of June 30, 2023, compared to SAR 608.71 million in a prior-year period.

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