Retal Q2 Profit Drops 5.7% to SAR 72.1 Million

Retal Urban Development Co. reported a second-quarter net profit of SAR 72.1 million, down 5.7% from SAR 76.5 million in the prior-year period, the company said on Monday.

Operating profit declined 41.3% to SAR 59.6 million from SAR 101.7 million in Q2 2024.

Earnings per share remained unchanged at SAR 1.00.

The company attributed the profit decline to:

• An 18.84% year-on-year drop in gross profit from development contracts, due to slower sales pace on ongoing projects.

• A 71.11% surge in selling, general, and administrative expenses, driven by higher hiring costs, benefits, and marketing spending linked to expansion plans.

Retal also recorded a gain of SAR 32.68 million from selling part of its units in a real estate fund during the quarter.