‎“Retal” profits jumped 136.3% during Q2, to SR 71 million ‎

Retal Urban Development Company revealed an increase in net profit after zakat and tax in the second quarter to 71 million riyals, compared to 30 million riyals in the same quarter of last year, at a rate of 136.3%. This came after today’s announcement of the preliminary financial results for the period ending in 2023- 06-30 (six months).

The operational profit amounted to 53.9 million riyals in the second quarter, compared to 25.1 million riyals in the same quarter of the previous year, with a growth of 115%.

The net profit after zakat and tax during the 6-month period amounted to 112.5 million riyals, compared to 93.4 million riyals in the same period last year, an increase of 20.4%.

The total shareholders’ equity “without minority rights” amounted to 726.8 million riyals in the current period, compared to 662.2 million riyals in the same period last year, an increase of 9.7%.

Earnings per share in the current period reached 0.28 riyals, compared to 0.23 riyals in the same period last year.

– The positive results achieved by Retal Company in the second quarter reflect the continuation of the positive trends in the results of the company’s business, as the net profit amounted to 71.0 million riyals compared to 30.0 million riyals compared to the same quarter of the previous year, which is an increase of 136.4%, due mainly to mainly for the following reasons:

The increase in revenues to 263.4 million Saudi riyals during the second quarter of 2023 AD, which is an annual growth rate of 96.3% compared to the same period of the previous year, which is due to the growth in revenues from development contracts, which rose to 227.9 million Saudi riyals, which is An annual growth rate of 207.3%

The total profit increased to 78.3 million Saudi riyals during the second quarter of 2023, which is an annual increase of 91.9% compared to the same period of the previous year, which is due to the increase in revenue from development contracts.

An increase in the share of investment returns that are accounted for using the equity method, to reach 40.8 million Saudi riyals during the second quarter of 2023 AD, compared to 6.9 million Saudi riyals during the same period in 2022 AD.

This came despite the following factors:

An increase in general and administrative expenses at an annual rate of 37.5% to reach 18.5 million Saudi riyals during the second quarter of 2023 AD, due to the developments made by the company regarding the administrative structure and to accommodate the strategic growth plans.

The increase in selling and marketing expenses at an annual rate of 163.1%, to reach 5.7 million Saudi riyals during the second quarter of 2023 AD, due to the increase in marketing expenses to support the company’s market share.

An increase in financing expenses at an annual rate of 341.1%, to reach 21.9 million Saudi riyals during the second quarter of 2023 AD, due to the increase in the Saudi interbank interest rate (SIBOR), in addition to the increase in total debt compared to the same period of 2023. previous year.

– The net profit amounted to 71.0 million riyals compared to 41.5 million riyals during the first quarter of 2023 AD, which is an increase of 70.9%, mainly due to the following reasons:

The increase in gross profit to 78.3 million riyals during the second quarter of 2023 AD, which is a growth rate of 3.6% compared to the previous quarter, which is due to the growth in gross profits from development contracts and sales of units and developed lands

The decrease in selling and marketing expenses for the second quarter of the current year (33.8%) to reach 5.7 million Saudi riyals compared to the previous quarter as a result of the decrease in the number of marketing activities in which the company participated in the current quarter compared to the previous quarter.

An increase in the share of investment returns that are accounted for using the equity method, to reach 40.8 million Saudi riyals during the second quarter of 2023 AD, compared to 0.5 million Saudi riyals during the first quarter of 2023 AD.

This came despite the following factors:

An increase in general and administrative expenses for the current quarter by 17.3% to reach 18.5 million Saudi riyals compared to the previous quarter, due to the increase in employee benefits and expenses related to the geographical expansion of the company in other major cities.

An increase in financing expenses at an annual rate of 133.9%, to reach 21.9 million Saudi riyals during the current quarter, on the back of the increase in the interest rate between Saudi banks (SIBOR) in addition to the increase in total debt compared to the previous quarter.

– The net profit amounted to 112.5 million riyals during the first half of the year 2023 AD, compared to 93.4 million riyals during the first half of the year 2022 AD, which is an increase of 20.5%, and this is mainly due to the following reasons:

The increase in revenues to 583.0 million Saudi riyals during the first half of 2023 AD, which is an annual growth rate of 42.4% compared to 409.3 million Saudi riyals during the same period of the previous year, which is due to the growth in revenues from development contracts, which rose to 518.1 million Saudi riyals, which is an annual growth rate of 85.3%

The increase in total profit to 153.9 million Saudi riyals during the first half of 2023, which is an annual increase of 30.2% compared to the same period of the previous year, which is due to the increase in the number of projects being developed compared to the same period of the previous year. ..

An increase in the share of investment returns that are accounted for using the equity method, to reach 41.3 million Saudi riyals during the first half of 2023 AD, compared to 9.2 million Saudi riyals during the same period in 2022 AD.

This came despite the following factors:

An increase in general and administrative expenses at an annual rate of 39.9%, to reach 34.4 million Saudi riyals during the first half of 2023 AD, due to the developments made by the company with regard to the administrative structure and to accommodate the strategic growth plans.

The increase in selling and marketing expenses at an annual rate of 68.9% to 14.3 million Saudi riyals during the first half of 2023 AD, due to the increase in marketing expenses to support the company’s market share.

• The increase in financing expenses at an annual rate of 229.7%, to reach 31.2 million Saudi riyals, on the back of the increase in the interest rate between Saudi banks (SIBOR), in addition to the increase in total debt compared to the same period of the previous year.