Budget Saudi H1 2024 profit slightly rises to SAR 140.9M; Q2 at SAR 70.9M

United International Transportation Co. (Budget Saudi) reported a net profit of SAR 140.9 million in H1 2024, slightly higher from SAR 139.6 million in the year-earlier period.

The revenue increase of SAR 203 million in H1 2024 was primarily due to higher short-term and long-term rental revenues resulting from an expanded fleet with stable utilization rates. Additionally, this quarter's revenue includes approximately SAR 20 million from the recently acquired Overseas Development Co., in which the group now holds a 70% stake. This revenue stream was not present in the same period of 2023.

This was despite the general and administrative expenses related to the acquisition and certain one-time expenses at approximately SAR 8.5 million, increased salary costs from mandated higher minimum wages, and losses of SAR 2.5 million from the Overseas Development Co. The logistics company is expected to turn around by the end of the year or early next year.

The company reported a net profit of SAR 70.9 million in Q2 2024, slightly lower from SAR 70.8 million a year earlier, due to general and administrative expenses related to the acquisition and certain one-time expenses at nearly SAR 3.5 million.

Sequentially, Q2 2024 net profit grew 1.2% from SAR 70.87 million in Q1 2024.

Total shareholders’ equity, no minority interest, stood at SAR 1.97 billion as of June 30, 2024, compared to SAR 1.75 billion a year earlier.

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