‎“Arabia Contracting” profits soar 15% to SR66 mln in Q3‎

The net profit after zakat and tax for Arabian Contracting Services Co. increased to 66 million riyals during the third quarter, compared to 57 million riyals in the same quarter of last year, at a rate of 15%. This came after today’s announcement of the preliminary financial results for the period ending on September 30, 2022 (9 months).

The operational profit amounted to 84 million riyals in the third quarter, compared to 69 million riyals in the same quarter of the previous year, an increase of 22%.

As for gross profit, it amounted to 106 million riyals in the third quarter, compared to 87 million riyals in the same quarter of the previous year, a growth of 22%.

Arabian Contracting Services Co. recorded an increase in net profit for the current quarter by 15% compared to the same quarter of the last year, this is due to many main reasons, including the continuation of the Arabian Contracting Services Co. for digital transformation operations, in addition to the focus of Arabian Contracting Services Co. on its strategy, which aims to enter into new alliances and projects that support its plans locally and in the region, in order to increase its clients base in the long term. The increased rate of revenues contributed to achieving positive results during the current quarter as the rate of increase in revenues reached 37% for the current quarter compared to the same quarter of the last year. The increase in the indoor advertising sector by 154%, the outdoor advertising sector by 33%, and the printing sector by 49% led to an increase in total revenues, and accordingly, the Gross profit increased by 22% for the third quarter of 2022.

The back to schools and universities season, and national day campaigns, in addition to the start of the Saudi Games 2022 had a positive impact on the company’s revenues and business results during the current quarter.

The reason for the increase in net profit for the current quarter, which amounted to 5% compared to the last quarter, is due to a decrease in general and administrative expenses by 35%, and marketing and selling expenses recorded an increase of 2% only.

Arabian Contracting Services Co. achieved an increase of 43% in the net profit for the nine months period that ended on September 30, 2022 compared with the same period of the last year, which reflects the company’s focus on its strategic objectives, the continuation of digital transformation and expansion at a steady pace and according to what was planned, and the continuity of innovation and excellence and maintaining the momentum of growth, which contributed to achieving this positive rise in financial results for the current period compared to the same period of the last year.

Additional Information:

The earnings per share increased from 2.71 SAR/share for the same period of the last year to 3.87 SAR/share for the current period, with an increase of 43%.

The net operating cash flow increased from SAR 146.6 Million for the same period of the last year to SAR 323.9 Million for the current period of 2022, with an increase of 121%.