Theeb Rent a Car Co. Reports 26.4% Profit Decrease to SAR 142 Million by End of 2023

Theeb Rent a Car Co. announced a decrease in net profit for the year ending December 31, 2023, with earnings totaling 142 million riyals, down from 193.1 million riyals in the previous year, marking a decline of 26.4%. This announcement follows the release of the company’s annual financial results for the stated period.

Operating profit for the year ending December 31, 2023, amounted to 205.9 million riyals, compared to 227.7 million riyals in the previous year, reflecting a decrease of 9.6%.

The company witnessed a rise in revenues, reaching 1.13 billion riyals in the past year, compared to 967.9 million riyals in the preceding year, representing a 17.3% increase.

Earnings per share for the year 2023 were reported at 3.3 riyals, down from 4.49 riyals in the previous year.

The 17.3% increase in revenues in 2023, compared to 2022, was primarily attributed to a 22% increase in the average total fleet of the company, leading to an 11% increase in the average rented fleet. Additionally, there was a 43% increase in the number of cars sold during 2023.

The net profit for the year 2023 amounted to 142.1 million Saudi riyals, a decrease from 193.1 million Saudi riyals in 2022, representing a 26.40% decline. This decrease is attributed to a lower utilization rate of the short-term rental segment, along with increased related operational costs and financing costs on borrowings. However, these impacts were offset by improved revenues across all segments