| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 263.38 | 134.15 | 96.33 | 319.6 | -17.59 |
| Gross Profit (Loss) | 78.28 | 40.79 | 91.91 | 75.57 | 3.59 |
| Operational Profit (Loss) | 53.97 | 25.11 | 114.93 | 51.08 | 5.66 |
| Net Profit (Loss) after Zakat and Tax | 71 | 30.04 | 136.35 | 41.53 | 70.96 |
| Total Comprehensive Income | 71 | 30.03 | 136.43 | 41.53 | 70.96 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 582.98 | 409.31 | 42.43 |
| Gross Profit (Loss) | 153.85 | 118.19 | 30.17 |
| Operational Profit (Loss) | 105.05 | 85.07 | 23.49 |
| Net Profit (Loss) after Zakat and Tax | 112.54 | 93.43 | 20.45 |
| Total Comprehensive Income | 112.54 | 93.47 | 20.4 |
| Total Share Holders Equity (after Deducting Minority Equity) | 726.85 | 662.2 | 9.76 |
| Profit (Loss) per Share | 0.28 | 0.23 | |
| 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 | The positive results achieved by Retal Company in the second quarter reflects continuation of the positive trends in the company's business results, as the net profit amounted to 71.0 million riyals compared to 30.0 million riyals during the second quarter of 2022, which is an increase of 136.4%, mainly due to the following reasons: |
• Revenues increased to 263.4 million Saudi riyals during the second quarter of 2023, which is an annual growth rate of 96.3% compared to the same period of the previous year, attributed to the growth in revenues from development contracts, which rose to 227.9 million Saudi riyals, with an annual growth rate of 207.3%.
• Gross profit increased to SAR 78.3 million during the second quarter of 2023, which is an annual increase of 91.9% compared to the same period of the previous year, due to the increase in revenue from development contracts.
• An increase in shares of results of equity accounted investments, reaching 40.8 million Saudi riyals during the second quarter of 2023, compared to 6.9 million Saudi riyals during the same period in 2022.
That was despite the following factors:
• An increase in general and administrative expenses at an annual rate of 37.5%, to reach 18.5 million Saudi riyals during the second quarter of 2023, on the background of evolutions achieved by the Company regarding the administrative structure and to accommodate the strategic growth plans.
• An increase in selling and marketing expenses at an annual rate of 163.1%, to reach 5.7 million Saudi riyals during the second quarter of 2023, due to the increase in marketing expenses to support the Company's market share.
• An increase in financing costs at an annual rate of 341.1%, to reach 21.9 million Saudi riyals during the second quarter of 2023, on the background of the increase in Saudi interbank offered rate (SIBOR), in addition to the increase of total debt compared to the same period of previous year.
• Gross profit increased to 78.3 million riyals during the second quarter of 2023, which is a growth rate of 3.6% compared to previous quarter, due to the growth in gross profits from development contracts and sales of units and developed lands
• Decrease in selling and marketing expenses for the second quarter of current year (33.8%) to reach 5.7 million Saudi riyals compared to previous quarter as a result of the decrease in the number of marketing events in which the Company participated during current quarter compared to previous quarter.
• An increase in shares of results of equity accounted investments, reaching 40.8 million Saudi riyals during the second quarter of 2023, compared to 0.5 million Saudi riyals during the first quarter of 2023.
This was despite the following factors:
• An increase in general and administrative expenses for the current quarter by 17.3% to reach 18.5 million Saudi riyals compared to previous quarter, on the background of higher employees’ benefits in addition to expenses related to the company's geographical expansions to other major cities.
• An increase in financing costs at an annual rate of 133.9%, to reach SAR 21.9 million during current quarter, on the background of the increase in Saudi interbank offered rate (SIBOR) in addition to the increase of total debt compared to the last quarter.
• An increase in revenues to 583.0 million Saudi riyals during first half of 2023, which is an annual growth rate of 42.4% compared to 409.3 million Saudi riyals during the same period of previous year, which is due to growth in revenues from development contracts, which rose to 518.1 million Saudi riyals, represents a growth annual rate of 85.3%.
• Gross profit increased to SAR 153.9 million during the first half of 2023, which is an annual increase of 30.2% compared to the same period of previous year, which is due to the increase in the number of projects under development compared to same period of the previous year.
• An increase in shares of results of equity accounted investments, reaching 41.3 million Saudi riyals during first half of 2023, compared to 9.2 million Saudi riyals during the same period in 2022.
This was despite the following factors:
• An increase in general and administrative expenses at an annual rate of 39.9%, reaching 34.4 million Saudi riyals during first half of 2023, on the background of evolutions achieved by the Company regarding the administrative structure and to accommodate the strategic growth plans.
• An increase in selling and marketing expenses at an annual rate of 68.9% to 14.3 million Saudi riyals during first half of 2023, due to increase in marketing expenses to support the company's market share.
• An increase in financing costs at an annual rate of 229.7% reaching SAR 31.2 million, on the background of the increase in Saudi interbank offered rate (SIBOR), as well as the increase of total debt compared to the same period of previous year.
• The company launched the first phase of Nasaj Al-Fursan project, and the first phase was completely sold out.
• The number of residential projects under development increased from 4 projects to 11 projects on an annual basis, and new projects are expected to start during the third and fourth quarters of 2023.
• The company acquired land in the city of Jeddah to develop a luxury residential villas project.
• Last April, the company signed an agreement with the National Housing Company to develop 327 housing units in the city of Jeddah, consisting of residential villas, with a total value of the project estimated at 418.3 million Saudi riyals.
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