Retal profits jump 156% during Q3 to SR89.8 mln

The net profit after zakat and tax for Retal Urban Development Company jumped to SR89.8 million during the third quarter, compared to SR35 million in the same quarter of last year, at a rate of 156%.
This came after the announcement on Wednesday of the preliminary financial results for the period ending on September 30, 2022 (nine months).
The operational profit amounted to SR97 million in the third quarter, compared to SR36 million in the same quarter of the previous year, an increase of 167%.
The net profit after zakat and tax in the 9-month period amounted to SR183 million, compared to SR120 million in the same period last year, a growth of 53%.
Profits per share in the current period reached SR4.58, compared to SR3.08 in the same period last year.
Net profit in the current quarter amounted to SR89.76 million, compared to SR 35.12 million in the same quarter of previous year as the growth rate of net profit reached 156%, this is attributed to the growth of revenues by 71% and improvement of the Gross profit margin by 28% for current quarter, compared to gross profit margin of 23% in the same quarter of previous year. The gross profit growth rate is improved by 113% due to higher profitability from sale of real estate units and lands during the current quarter.
It is worth mentioning that despite of the increase in selling and marketing expenses and financing expenses which are mainly related to the increase in SIBOR rates (the Saudi interbank interest rate), the company achieved a significant improvement in the net profit margin ratio which amounted to 22% in the current quarter compared to 15% in the same quarter of the previous year.
Net profit in the current quarter amounted to SR 89.76 million, compared to SR 30 million in the previous quarter, as the growth rate of net profit was 199% compared to the previous quarter, that was attributed to the growth of revenues by 203% as a result of increase in revenues from development contracts due to commencing of new projects, as well as the increase in the revenues from sale of real estate units and lands in the current quarter compared to previous quarter, however, the gross profit growth rate reached 195%.
It is worth mentioning that despite of the increase in selling and marketing expenses and financing expenses which are mainly related to the increase in SIBOR (the Saudi interbank interest rate). Further, with the decrease in share of results of associates and no gain from sale of investments at FVTPL in the current quarter compared to previous quarter of the same year, the company maintained a stable net profit margin ratio of 22%.
The net profit during the current period amounted to SR 183.2 million, compared to SR 119.8 million in the same period of the previous year where the growth rate in net profits reached 53%, which was attributed to the growth of revenues by 33%, and reflected in an improvement in gross profit margin ratio for the current period to 28% compared to a gross profit margin of 24% in the same period of the previous year, and the growth rate in gross profit reached 58% due to the increase in profits from the sale of real estate units and lands in the current period.
It is worth mentioning that despite the increase in general and administrative expenses as a result of new human resources being appointed to accommodate the company expansions and also the increase in selling and marketing expenses in addition to the financing expenses due to the increase in SIBOR rates (the Saudi interbank interest rate), The company improved the net profit margin ratio to 22.5% in the current period compared to 19.6% in the same period of previous year.
Some comparative figures have been reclassified to be consistent with the presentation of the current period.