ARDCO profits decreased by 9.6% at end of 2023 to SAR 271.5 mln

Arriyadh Development Co. revealed a 9.6% decrease in net profit during the year ending December 31, 2023, to 271.5 million riyals, compared to 300.4 million riyals in the year before last. This came after today’s announcement of the annual financial results ending December 31, 2023.

Operating profit reached 147.1 million riyals during the year ending December 31, 2023, compared to 103.5 million riyals in the year before last, an increase of 42%.

Total ownership rights (after excluding non-controlling interests) amounted to 2.38 billion riyals last year, compared to 2.19 billion riyals in the year before last, an increase of 8.3%.

Earnings per share last year reached 1.53 riyals, compared to 1.69 riyals in the year before last.

The company’s revenue from main operations has increased significantly during 2023 by SAR 80 million or 31% compared to last year to reach SAR 339.2 million, , this is mainly attributed to:

1.Achieving the highest revenues in its history for the markets and centers, by additional SAR 39 million as compared to last year to reach SAR 298 million. This is mainly due to increase in occupancy rates, increase in prices of some services and recording the revenue of the new office building in Almalga for the entire year.

2. The sale of part of the company’s unutilized lands which are held for sale at a value of SAR 41 million, in line with the company’s strategy to maximize return on assets.

Despite the decrease of our share in the associate company “Tanal” by SAR 93 million or 49%, the company achieved profits of SAR 271.5 million, a decrease of SAR 29 million or 10% as compared to last year. The company has managed to minimize the impact of the drop in Tanal’s profit through:

1-Increase in main operations revenue by SAR 80 million, that was offset by an increase in cost of revenue by SAR 34 million, which led to an increase in gross profit by SAR 46 million,

2-Increase in other income by SAR 12 million due to the reversal of a potential liability provision.

3-Increase in Murabaha deposit revenues by SAR 16 million.

This is despite of the increase in zakat expense provision by SAR 7.6 million compared to last year

Reclassification of comparative figures compatible with the display tab for the current period.

During 2022, the entire equity investment portfolio in Tadawul, with a total value of approximately SAR 61 million was liquidated which resulted in profits of SAR 27 million on the sale of investments. This profit has been transferred from comprehensive income to retained earnings in accordance with IFRS No.9.