Riyadh Development net profit down 6% to SAR 300.4 mln in 2022; Q4 at SAR 38.7 mln

Riyadh Development Co. (ARDCO) reported a decline of 6% in net profit to SAR 300.4 million in 2022, from SAR 318.3 million a year earlier.

The profit decline was attributed to a 16% year-on-year (YoY) drop in revenue from Tanal Real Estate Investment and Development Co., an associate company. This was due to the pullback in land sales volume, although average sale prices increased.

Cost of revenue rose 14% YoY as a result of ARDCO’s spending on maintenance to upgrade its assets and obtain mandatory safety certificates. In addition, the company expanded its operational team, which will enhance operational efficiency.

Zakat expenses increased by 36% YoY to SAR 12.6 million in 2022.

This was despite a 10% YoY drop in general and administrative expenses.

Operating revenue increased by SAR 8 million on the acquisition of an office building during Q4 2022. This was coupled with improved efficiency and occupancy rates in the company's assets reaching 93%.

Profits from Islamic Murabaha deposits increased by 469% YoY, given the uptick in both interest rates and the YoY jump in the volume of the company’s Murabaha deposits.

The company turned to a net profit of SAR 38.7 million in Q4 2022, against a loss of SAR 6.9 million in the year-ago period.

Sequentially, net profit fell nearly 41% from SAR 65.4 million in Q3 2022.

Total shareholders’ equity, no minority interest, grew to SAR 2.19 billion as of Dec. 31, 2022, from SAR 2.02 billion a year earlier.

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