‎“Retal” profits decreased by 62.7% during Q3 to 33.4 million ‎riyals

Retal Urban Development Company revealed a decline in net profit after zakat and tax in the third quarter to 33.4 million riyals, compared to 89.7 million riyals in the same quarter of last year, by 62.7%. This came after today’s announcement of the preliminary financial results for the period ending on September 30 2023 (nine months).

Operating profit reached 56.2 million riyals in the third quarter, compared to 98.9 million riyals in the same quarter of the previous year, a decrease of 43.1%.

Net profit after zakat and tax in the 9-month period amounted to 146 million riyals, compared to 183.2 million riyals in the same period last year, a decrease of 20.3%.

Earnings per share in the current period reached 0.29 riyals, compared to 0.37 riyals in the same period last year.

– Net profit during the third quarter amounted to 33.44 million riyals, a decrease of 62.75% compared to the same quarter last year. The decrease in net profit during the current quarter is due to the following:

– A decrease in revenues by 17.3% to reach 335.99 million riyals. The reason for this is the decrease in revenues from the sale of real estate units/lands by 98.9% to reach 2.57 million riyals despite the increase in revenues from development contracts by 91.3% to reach 320.84 million riyals. As a result of the increase in the number of projects being implemented

– General and administrative expenses increased by 109.3% to reach 26.25 million riyals, against the backdrop of the developments made by the company with regard to the administrative structure and to accommodate the strategic growth plans.

– Sales and marketing expenses increased by 61.6% to reach 9.17 million riyals as a result of the increase in expenses related to enhancing the company’s market share and enhancing the strength of the company’s brand.‎

– Financing expenses increased by 265.6% to reach 26.97 million riyals as a result of the increase in the Saudi interbank interest rate (cyber) and the increase in total debt.

– Net profit during the third quarter amounted to 33.44 million riyals, a decrease of 52.91% compared to the previous quarter. The decrease is due to the following:

– Decrease in revenues from the sale of real estate units/lands by 87.2%, reaching 2.57 million riyals.

– General and administrative expenses increased by 41.2% to reach 26.25 million riyals, against the backdrop of the developments made by the company with regard to the administrative structure and to accommodate strategic growth plans.

– Sales and marketing expenses increased by 60.2% to reach 9.17 million riyals as a result of the increase in expenses to support the company’s market share and enhance the strength of the company’s brand.

– Financing expenses increased by 23.0% to reach 26.97 million riyals as a result of the increase in the Saudi interbank interest rate (cyber) and the increase in total debt.

– The net profit in the second quarter included a share in the returns on investments that are accounted for using the equity method in the amount of 40.8 million riyals.

This came despite an increase in revenues by 27.6% as a result of an increase in revenues from development contracts by 40.8% to reach 320.84 million riyals as a result of the increase in the number of projects being implemented.

– Net profit during the current period amounted to 145.98 million riyals, a decrease of 20.31% compared to the previous period of last year. The decrease is due to the following:

– Revenues from the sale of real estate units/land decreased by 87.4% to reach 41.67 million riyals despite an increase in revenues from development contracts by 87.6% to reach 838.96 million riyals due to the increase in the number of projects being implemented.

– General and administrative expenses increased by 63.3% to reach 60.68 million riyals, against the backdrop of the developments made by the company with regard to the administrative structure and to accommodate strategic growth plans.

– Sales and marketing expenses increased by 66.0% to reach 23.54 million riyals as a result of the increase in expenses to support the company’s market share and enhance the strength of the company’s brand.

– Financing expenses increased by 245.4% to reach 58.27 million riyals as a result of the increase in the interest rate between Saudi banks and the increase in total debt.