Theeb Rent a Car profits rise to SR27 mln during the 3Q, by 95%

Theeb Rent a Car net profits after zakat and tax, rose to SR27.35 million during the third quarter, compared to SR13.98 million during the same quarter of the previous year, an increase of 95.58%.

This came After Theeb Rent a Car Co. announced on Tuesday its interim financial results for the period ending on 2021-09-30 ( nine months )

The operational profit amounted to SR34.68 million during the third quarter, compared to SR22.98 million during the same quarter of the previous year, an increase of 50.9%.

The gross profit amounted to SR62.76 million during the third quarter, compared to SR38.56 million during the same quarter of the previous year, a growth of 62.76%.

The net profit after zakat and tax during the current period amounted to SR78.28 million, compared to SR41.87 million during the same period of the previous year, an increase of 86.96%.

Profits per share during the current period amounted to SR1.82 riyals, compared to SRR0.97 during the same period of the previous year.

Net profit for Q3-2021 was SAR 27.4 million, compared to SAR 14.0 million for the same quarter of 2020. The net profit increase was mainly attributed to the significant increased short term rental revenues. This resulted in increased short term rental utilization and increased gross margins for the short-term rental segment. The lease segment and used car sales segment continued to show steady improvement in net income during Q3-2021.

Net profit for Q3-2021 was SAR 27.4 million, compared to SAR 25.0 million in Q2-2021. The increase resulted from higher short-term rental segment gross profit as the fleet utilization increased compared to Q2-2021.

The net profit in the first nine months of 2021 increased to SAR 78.3 million compared to SAR 41.9 million in the first nine months of 2020. This was due to continuous improvement in demand for the short term car rental services in 2021 whereby 2020 was adversely impacted by precautionary measures taken by the authorities to curb the impact of COVID-19. This resulted in higher rented cars with better utilization for the short term rental segment. The lease segment showed continued stable growth Year-on-Year resulting from increased contract renewals and newer clients.

Note 3 to the interim condensed financial statements. As stated therein, during the period ended 30 September 2021, management has received a correspondence from the Zakat, Tax and Customs Authority (“ZATCA”), regarding certain possible taxes on the Company relating to the ownership interests of one of the Company’s shareholders. As at the date of this report, no official assessment has been received from ZATCA.