Al Akaria profit falls to SAR 67.6M in 2023; Q4 at SAR 156.8M

Saudi Real Estate Co. (Al Akaria) posted a net profit of SAR 67.6 million in 2023, compared to SAR 110.5 million in 2022.

The profit decline was attributed to a SAR 531 million year-on-year (YoY) fall in revenues from sales of residential units as the year ago comprised sales of the Al-Dahia project. Also in 2023, land sales slumped SAR 58 million YoY, coupled with lower sales of the Al Akaria Park project and a SAR 31 million drop in revenues from construction projects.

The company also cited an increase in financing charges by SAR 96 million due to the significant rise in interest rates.

In addition, one of the company's subsidiaries widened its losses in 2023 after recording SAR 46 million in one-off losses stemming from one of its projects.

Moreover, general and administrative expenses rose by SAR 35 million last year given the expansion in the subsidiaries’ activities. Zakat and tax expenses also climbed by SAR 11 million in 2023, mainly due to the increase in net profit of one of the subsidiaries.

This was offset by a YoY leap of SAR 105 million in gross profit in 2023.

The fourth-quarter net profit leapt 90% to SAR 156.8 million, from SAR 82.59 million in the year-earlier period.

Sequentially, the company tuned profitable from a net loss of SAR 15.62 million in Q3 2023.

Shareholders’ equity, excluding minority interest, stood at SAR 4.74 billion as of Dec. 31, 2023, compared to SAR 4.60 billion a year earlier.

Accumulated losses reached SAR 67 million at the end of the current period, representing 1.8% of the company's capital.

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