Arabian Centres Co. announces its Interim Financial Results for the Period Ending on 2023-06-30 ( Six Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 565.3 | 562.9 | 0.43 | 576.8 | -1.99 |
| Gross Profit (Loss) | 458 | 458.3 | -0.07 | 491.1 | -6.74 |
| Operational Profit (Loss) | 432.1 | 280.1 | 54.27 | 490.1 | -11.83 |
| Net Profit (Loss) after Zakat and Tax | 337.1 | 184.9 | 82.31 | 388 | -13.12 |
| Total Comprehensive Income | 327.1 | 187 | 74.92 | 388.1 | -15.72 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 1,142 | 1,082.1 | 5.54 |
| Gross Profit (Loss) | 949.2 | 902.3 | 5.2 |
| Operational Profit (Loss) | 922.1 | 575.7 | 60.17 |
| Net Profit (Loss) after Zakat and Tax | 725.1 | 356.7 | 103.28 |
| Total Comprehensive Income | 715.2 | 364.8 | 96.05 |
| Total Share Holders Equity (after Deducting Minority Equity) | 13,952.6 | 13,772.4 | 1.31 |
| Profit (Loss) per Share | 1.52 | 0.75 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | Net profit increased by 82.3% to SAR 337.1 million in Q2-23 (3 months ended Jun-2023) compared to SAR 184.9 million in Q2-22 (3 months ended Jun-2022). The increase in net profit for the current period was driven mainly by the following: |
• An increase in revenues, which grew by 0.4% y-o-y to book SAR 565.3 million for Q2-23 compared to SAR 562.9 million in Q2-22. Top-line growth for the period was driven primarily by an increase in net rental revenue which increased y-o-y by 1.2% to SAR 514.5 million.
• Gross profit, slightly declined by 0.1% y-o-y to book SAR 458.0 million resulting in a GPM of 81.0% in Q2-23 compared to 81.4% in Q2-22. The decrease in gross profit was primarily influenced by higher insurance expenses by SAR 8.9 million.
• Net fair value gain on investment properties amounting to SAR 72.9 million in Q2-23, compared to net fair value loss of SAR 100.0 million recorded in Q2-22. This reflects the update of the external valuation exercise undertaken as at June 2023.
• Reversal of impairment on accounts receivable amounting to SAR 1.2 million in Q2-23, in contrast to impairment loss of SAR 15.0 million recorded in Q2-22
• A decrease in interest expense on lease liabilities, which declined by 34.9% y-o-y to book SAR 26.0 million in Q2-23 compared to SAR 39.9 million in Q2-22.
• Decrease in operational profit, which declined by 11.8% q-o-q to book SAR 432.1 million for Q2-23 compared to SAR 490.1 million in Q1-23 as Q1-23 reflected the SAR 238.7 million profit from the sale of Al Raed district land, part of the non-core asset sale program, offset by SAR 114.6 million for impairment loss on accounts receivable.
• An increase in revenues, which grew by 5.5% y-o-y to book SAR 1,142.0 million for H1-23 compared to SAR 1,082.1 million in H1-22. Top-line growth for the period was driven primarily by an increase in net rental revenue which increased y-o-y by 7.8% to SAR 1,044.4 million.
• Gross profit grew by 5.2% y-o-y to book SAR 949.2 million resulting in a GPM of 83.1% in H1-23 compared to 83.4% in H1-22.
• An increase in other operating income, which reached SAR 272.1 million during H1-23 compared to SAR 21.3 million in H1-22. The increase in other operating income was mainly driven by the profit of SAR 238.7 million from the sale of Al Raed district land, part of the non-core asset sale program.
• Net fair value gain on investment properties amounting to SAR 21.2 million in H1-23, compared to net fair value loss of SAR 174.1 million recorded in H1-22.
• A decrease in other operating expense, which decreased by 37.7% y-o-y resulting in a total of SAR 18.1 million, compared to SAR 29.1 million recorded in H1-22.
• A decrease in interest expense on lease liabilities, which declined by 34.8% y-o-y to book SAR 52.4 million in H1-23 compared to SAR 80.4 million in H1-22.
• Cenomi Centers booked an EBITDA of SAR 902.8 million in H1-23, a 19.3% y-o-y increase against the SAR 756.6 million recorded in H1-22. This increase reflects higher revenues y-o-y as well as the impact of the non-core asset sale for SAR 644.5 million in the period, for a SAR238.7 million profit.
• Like-for-like period-end occupancy reached 91.4% at the end of Q2-23, compared to 92.3% at the end of Q1-23.
• Visitor footfall increased by 33.5% y-o-y to record 63.1 million during H1-23.
For more information regarding Cenomi Centers financial and operational results for the period, please see the Earnings Press Release accompanying this disclosure. The release also includes comments from the CEO.
Recent updates concerning FAS Labs.
Cenomi Centers made an announcement that FAS Labs has received the final approval from the Saudi Central Bank to license FAS Finance Company. The approval allows FAS Finance to offer consumer microfinance solutions through financial technology. Cenomi Centers ownership interest in FAS Finance is through its 50% stake in FAS Labs. It's important to note that "FAS Labs," a Limited Liability Company, is jointly owned by both Cenomi Centers and Cenomi Retail. The approval was granted on 25-07-2023.
Dividend announcements
On 16-07-2023, the Company announced its Board of Directors’ decision to distribute cash dividends to the shareholders for the first half of the fiscal year 2023, with SAR 46.15 million of dues from related parties to be settled as part of the distribution to the major shareholders.
Prior to this, on 02-04-2023, the Company had announced SAR 475 million special dividends to shareholders, equivalent to SAR 1 per share for Q4 2022. The dividend represents 10% of the capital for 475 million eligible shares. The special dividend follows strong business results, top-line expansion, and successful non-core asset land sale program in 2022.
Appointment of Al Rajhi Capital as market maker
During the reported period, Cenomi Centers announced the decision of its Board of to appoint Al Rajhi Capital as a market maker for the Company’s stock, to support the Company’s stock liquidity levels in its trading. Following this move, the Saudi Exchange Company officially approved Al Rajhi Capital's application, making them the first-ever market maker on the Saudi Exchange.
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.