Dar Alarkan’s Profits Surge to SAR 610.7 Million by End of 2023, a 38.2% Increase

Dar Alarkan Real Estate Development Co. announced a substantial increase in net profit for the year ending on December 31, 2023, soaring to 610.7 million riyals from 441.7 million riyals in the preceding year, marking a notable growth of 38.2%. This announcement follows the release of the company’s annual financial results for 2023.

Operating profit for the same period totaled 865.3 million riyals, compared to 1.09 billion riyals in the previous year, representing a decrease of 21.3%.

Total ownership rights (after excluding non-controlling interests) amounted to 20.2 billion riyals last year, compared to 19.6 billion riyals in the year before last, indicating an increase of 3.5%.

Earnings per share for the year stood at 0.57 riyals, a rise from 0.41 riyals in the previous year.

The decrease in sales revenue for the current year compared to the previous year can be attributed primarily to lower property sales. However, despite the decrease in property sales, the increase in net income is mainly attributed to the rise in the share of income from associates and the increase in lease revenue.

The increase in finance costs was fully offset by the decrease in operating expenses and the higher non-operating income from Islamic Murabaha deposits, which had a positive impact on the net income.

These results reflect Dar Alarkan’s strategic initiatives and successful management of financial resources, leading to robust growth in profits despite challenges in property sales revenue