BAAN Holding Posts SAR 5.2 Million Net Profit in 2024 After Prior-Year Loss

BAAN Holding Group reported a net profit of SAR 5.2 million by the end of 2024, compared to a loss of SAR 90 million in 2023, following the announcement of its preliminary financial results for the period ending December 31, 2024.

Operating profit surged to SAR 62 million, compared to an operating loss of SAR 1.9 million in 2023. Shareholders’ equity (excluding non-controlling interests) rose 2% to SAR 207 million, up from SAR 203 million in 2023. Earnings per share (EPS) stood at SAR 0.02, compared to a loss per share of SAR 0.29 in the previous year.

The company reported revenues of SAR 678.70 million, an 8.55% decline from SAR 742.14 million in 2023. The revenue decrease of SAR 63.44 million was mainly due to:

• A SAR 39.55 million drop in hotel sector revenues, driven by the divestment of loss-making hotels in 2023 as part of the group’s restructuring strategy. Additionally, revenues were impacted by the temporary closure of a Riyadh hotel due to a fire incident in Q4 2023. However, higher occupancy rates and room prices in Q1 and Q4 2024, supported by increased events and exhibitions in Riyadh, helped offset the decline.

• A SAR 40.86 million drop in entertainment sector revenues, as third-party project development revenues fell from SAR 54.23 million in 2023 to SAR 4.47 million in 2024. However, renovations of two key entertainment centers in Riyadh and Jeddah, along with the opening of a new entertainment center in Jeddah, contributed to a recovery in revenues.

• A SAR 16.97 million increase in other revenues, primarily due to BAAN Holding’s entry into the catering and food services sector and the commencement of operations in 2024, which the company aims to expand further.