Makkah Construction and Development’s Profits Surge to SAR 334 Million by End of 2023, a 114% Increase

Makkah Construction and Development Company announced a significant increase in net profit for the year ending December 31, 2023, reaching 334 million riyals compared to 156 million riyals in the preceding year, marking a remarkable growth of 114%. This announcement follows the release of the company’s annual financial results for the same period.

Operating profit also saw a substantial rise, reaching 345 million riyals during the year ending December 31, 2023, compared to 174 million riyals in the previous year, reflecting a growth of 98.2%.

The total ownership rights (after excluding non-controlling interests) amounted to 4.09 billion riyals last year, up from 3.36 billion riyals in the preceding year, indicating an increase of 21.7%. Earnings per share for the year reached 2.03 riyals, a significant increase from 0.94 riyals in the previous year.

The remarkable growth in revenues is attributed to the increased occupancy rates of residential rooms at the Makkah Hotel and Towers Company, driven by a rise in the number of visitors and pilgrims. Additionally, improved average accommodation prices and increased revenues from the mall, resulting from the rental of previously vacant shops, contributed to this positive outcome. Furthermore, the allowance for credit losses was reversed, positively impacting the net profit.

The company also referenced its announcement published on the Tadawul website on 05/17/2022, regarding the approval of the ninth extraordinary general assembly of the company’s shareholders to amend some articles of the company’s bylaws. Notably, Article 42 was amended to convert the company’s fiscal year from the Hijri year ending on (4/30) to the Gregorian year ending on (12/31). As a result, the company issued financial statements for the short Hijri fiscal year, beginning on 5/1/1443 AH and ending on 11/14/1443 AH, and financial statements for the short Gregorian fiscal year, beginning on 06/14/2022 and ending on 12/31/2022. These financial statements were used for comparison purposes for the previous year, 2022