Emaar EC cuts H1 2023 loss to SAR 76 mln; Q2 profit at SAR 95 mln

Emaar The Economic City (Emaar EC) narrowed H1 2023 net loss to SAR 76 million from SAR 417 million in the prior-year period.

The improvement in results was mainly due to an increase in sales of real estate assets, a rise in other operating income as well as lower selling, general and administrative expenses. However, the positive impacts were partially offset by an increase in finance charges.

In Q2 2023, the company turned to a net profit of SAR 95 million from a loss of SAR 251 million a year earlier.

This was driven by recording a gross profit of SAR 237 million in the three-month period against a loss of SAR 51 million a year earlier, with an increase in gross margin of SAR 288 million. General and administrative expenses amounted to SAR 80 million, compared with SAR 106 million in Q2 2022.

Emaar EC turned profitable from a loss of SAR 171.28 million in Q1 2023.

Shareholders’ equity, no minority interest, reached SAR 6.58 billion by the end of the six-month period, down from SAR 7.36 billion a year earlier.

Accumulated losses stood at SAR 4.75 billion, or 41.9% of the company’s capital as of June 30, 2023.

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