Arriyadh Development Profits Decline to SR57.4 mln during 2Q, by 60%

The net profit after zakat and tax for Arriyadh Development Company decreased to SR57.4 million during the 2Q, compared to SR143.4 million in the same quarter of last year, by 60%.

This came following the announcement on Tuesday of the consolidated preliminary financial results for the period ending on 30.06.2022 (six months).

The operational profit amounted to SR24 million in the 2Q, compared to SR43.0738 million in the same quarter of the previous year, a decrease of 37%.

The gross income in the 2Q amounted to SR43 million, compared to SR45 million in the same quarter of last year, down 4%.

The net profit amounted to SR196 million in the 6-month period, compared to SR254.44 million in the same period last year, down 23%.

Profits per share in the current period reached SR1.1, compared to SR1.43 in the same period last year.

The Company has achieved a net profit of SR 57.4 million during the current quarter, a decrease of 60% compared to the same period last year. This is mainly a result of a reduced income from Tanal (associate company) by 70% due to lower land sales volume. In addition, the General & Administrative expenses increased by 184% mainly due to current lawsuits provisions of SR 10.3 million, as well as the appointment of some senior positions, as per the transformation budget approved by the board directors.

The cost of revenue increased by 15% due to essential maintenance works to upgrade the Company’s assets, as well as the appointment of new talents in operations.

On the other hand, operating revenue increased by 1.5% after the completion of the essential maintenance works.

Also, the profit of Islamic Murabaha deposits increased by 633% due to higher interest rates and increase in Murabaha deposits amount.

The Company has achieved a net profit of SR 57.4 million during the current quarter, a decrease of 59% compared to the previous quarter. This is mainly a result of a reduced income from Tanal (associate company) by 70 due to lower land sales volume %In addition; the General & Administrative expenses increased by 145% mainly due to current lawsuits provisions of SR 10.3 million, as well as the appointment of some senior positions, as per the transformation budget approved by the board directors.

On the other hand, operating revenue increased by 5% after the completion of essential maintenance works.

Also, the profit of Islamic Murabaha deposits increased by 520% due to higher interest rates and increase in Murabaha deposits amount.

The Company has achieved a net profit of SR 196.3 million during the current quarter, a decrease of 23% compared to the same period last year. This is mainly a result of a reduced income from Tanal (associate company) by 22%, due to lower land sales volume. In addition, the General & Administrative expenses increased by 1`% mainly due to current lawsuits provisions of SR 10.3 million, as well as the appointment of some senior positions, as per the transformation budget approved by the board directors.

The cost of revenue increased by 20% due to essential maintenance works to improve the Company’s assets, as well as the appointment of new talents in operations.

Also, the profit of Islamic Murabaha deposits increased by 520% due to higher interest rates and increase in Murabaha deposits amount.

It has been reclassification comparative figures compatible with the display tab for the current period.

During the current period of 2022, the entire equity investment portfolio in Tadawul, with a total value of approximately SR 61 million, was liquidated which resulted in profits of SR 27 million on the sale of investments. This profit has been transferred from comprehensive income to retained earnings in accordance with IFRS No.9.