Riyadh Development profit down 62% to SAR 75.7 mln in H1 2023; Q2 at SAR 43.3 mln

Riyadh Development Co.’s net profit slumped 62% to SAR 75.7 million in H1 2023 from SAR 196.3 million a year earlier.

The profit decline was attributed to 86% lower income from Tanal Co. (an associate company) due to the latter’s decision to hold off sales in order to evaluate optimal usage of remaining plots (estimated at 371,000 square meters (sqm), of which 257,000 sqm are owned by Riyadh Development).

This came despite the year-on-year (YoY) increase in average selling price per sqm during the period.

The company also cited an uptick in the costs of revenue due to creating a provision for meat market rent, coupled with costs of the newly-acquired office tower.

Meanwhile, there was a rise in general and administrative expenses due to creating a provision for receivables, in addition to consulting expenses for institutional development and recruitment of a qualified team as per the plan approved by the board.

The company reported a net profit of SAR 43.27 million in Q2 2023, a 24.6% YoY decline.

Sequentially, net profit rose 33.6% from SAR 32.39 million in Q1 2023.

Total shareholders’ equity, no minority interest, stood at SAR 2.22 billion as of June 30, 2023, compared to SAR 2.13 billion a year earlier.

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