Retal reports 61.5% profit jump in 1Q to SR63.4 mln

Retal Urban Development Co. announced on Tuesday that its profits (after zakat and tax) rose 61.5% to SR 63.4 million in the first quarter of 2022 from SR 39.2 million during the same period of 2021.

This came after Retal announced its interim financial results for the period ending on 2022-03-31 (Three Months).

The company’s operational profits grew 44.2% to SR 58.06 million during the 1Q of the current year from SR 40.2 million in the same period of the previous year.

Gross profits of Retal jumped 47.9% to SR 75.5 million from SR 51.04 million a year ago.

Total shareholders’ equity (after deducting minority equity) surged 12.3% to SR 632.3 million from SR 563.04 million, while the profit per share (EPS) soared to SR 1.59 from SR 1.05.

The Company achieved a net profit of SR 63.44m compared to SR 39.26m for the same quarter of last year, where the revenues of first quarter increased by 27.37% compared to same quarter of the last year. The increase was mainly driven by the increase in development contracts revenues and sales of developed lands which significantly contributed to the growth of Company’s gross profit by 47.92% compared to Q1 of last year, delivering a gross profit of SR 75.5m compared to SR 51.04m for same quarter of the last year, to register gross profit margin of 27.44% for Q1 of current year compared to 23.63% for Q1 of the last year, which impacted the growth of the Company’s net profit by 61.59% compared to same quarter last year.

However, with the increase in G&A expenses and S&M expenses the company achieved a net profit margin of 23.06% compared to 18.17% in the same quarter of last year.

The Company achieved a net profit of SR 63.44m compared to SR 73.82m for last quarter, resulting from the increase of revenues in development contracts and sales of developed lands in the previous quarter compared to the current quarter.

However, gross profit margin increased in current quarter to 27.44% compared to 21.26% in previous quarter.

Additional Information:

Earnings per share(EPS) had been adjusted after the company’s capital increased from SR 375m to SR 400m, which was approved by the Company’s General Assembly that was held on May 31, 2021G