Cenomi Centers profits jump to SAR 388 million by 126% during Q1

Arabian Centers Co. (Cenomi Centres) revealed an increase in net profit after zakat and tax in the first quarter to SAR 388 million, compared to SAR 172 million in the same quarter of last year, by 126%. This came after the announcement on Tuesday of the interim financial results for the period ended on March 31st, 2023 (three months).

The operating profit amounted to SAR 490 million in the first quarter, compared to SAR 295.9 million in the same quarter of the previous year, a growth of 65.8%.

Total shareholder equity “without minority rights” amounted to SAR 14.1 billion in the current period, compared to SAR 13.5 billion in the same period last year, an increase of 3.7%.

Profits per share in the current period reached SAR 0.81, compared to SAR 0.37 in the same period last year.

Net profit increased by 125.8% to SAR 388.0 million in Q1-23 (3 months ended March 31st, 2023) compared to SAR 171.9 million in Q1-22 (3 months ended March 31st, 2022). The increase in net profit for the current period was driven mainly by the following:

• An increase in revenues, which grew by 11.1% y-o-y to book SAR 576.8 million for Q1-23 compared to SAR 519.2 million in Q1-22. Top-line growth for the period was driven primarily by an increase in net rental revenue and secondarily, by an increase in media sales, which expanded by 5.6% y-o-y. The overall revenue increase was partially offset by a 32.2% y-o-y decline in utilities & other revenue.
• An increase in other operating income, which grew to SAR 267.9 million during Q1-23 against SAR 20.0 million in Q1-22. The increase in other operating income was mainly driven by profit of SAR 238.7 million from the non-core asset sale program.
• A decrease in net fair valuation loss on investment properties to SAR 51.7 million in Q1-23 compared with SAR 74.1 million in Q1-22. Despite the net fair valuation gain of SAR 90 million in Q1-23, it has been offset by the charges arising from the termination of the Madina project, resulting in a total loss of SAR 51.7 million.
• A decrease in interest expense on lease liabilities, which declined by 34.8% y-o-y to book SAR 26.4 million in Q1-23 compared to SAR 40.5 million in Q1-22.

Net profit decreased by 14.9% to SAR 388.0 million in Q1-23 (3 months ended March 31st, 2023) compared to SAR 455.7 million in Q4-22 (3 months ended Dec. 31st, 2022). The decrease in net profit for the current period was driven mainly by the following:

• Recording a fair value loss of SAR 51.7 million in Q1-23 compared with the gain recorded of SAR 220.5 million in Q4-22. Despite the net fair valuation gain of SAR 90 million in Q1-23, it has been offset by the charges arising from the termination of the Madina project, resulting in a total loss of SAR 51.7 million.

Other financial and operational KPIs:

• Cenomi Centers booked an EBITDA of SAR 543.1 million in Q1-23, a 48.7% y-o-y increase against the SAR 365.2 million recorded in Q1-23. This increase reflects the impact of the non-core asset sale for SAR 644.5 million in the period, for a SAR238.7 million profit.
• Like-for-like period-end occupancy reached 92.3% at the end of Q1-23, compared to 94.2% at the end of Q4-22.
• Visitor footfall increased by 47.4% y-o-y to record 29.4 million during Q1-23.