Arriyadh Development Co. — Interim / Quarterly Report 2022

Nov 1, 2022

Arriyadh Development Co. announces its Interim Financial Results for the Period Ending on 2022-09-30 ( Nine Months )

4150 · 01/11/2022 15:33:53 · Announcement #70744 · View on Saudi Exchange

Arriyadh Development Co. announces its Interim Financial Results for the Period Ending on 2022-09-30 ( Nine Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	63.7	61.9	2.91	61.1	4.25
Gross Profit (Loss)	40.65	41.5	-2.05	43.28	-6.08
Operational Profit (Loss)	21.83	33.4	-34.64	24.01	-9.08
Net Profit (Loss) after Zakat and Tax	65.42	70.8	-7.6	57.4	13.97
Total Comprehensive Income	65.42	77.1	-15.15	57.14	14.49
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	188.7	188.1	0.32
Gross Profit (Loss)	124.02	132.8	-6.61
Operational Profit (Loss)	78.05	113.6	-31.29
Net Profit (Loss) after Zakat and Tax	261.73	325.2	-19.52
Total Comprehensive Income	269.97	343.8	-21.47
Total Share Holders Equity (after Deducting Minority Equity)	2,158	2,032	6.2
Profit (Loss) per Share	1.47	1.83
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 company has achieved a net profit of SAR 65,4 million during the current quarter, a decrease of 8% compared to the same period last year, mainly due to higher cost of revenue by 13% because of the essential maintenance works to upgrade the company’s assets as well as the appointment of technical talents. In addition, the General & Administrative expenses increased due to the approved plan by the board of directors for the transformation and institutional development.

On the other hand, the operating revenue has been increased by 3% as a result of the essential maintenance works to upgrade the company’s assets which has affected the occupancy level positively.

Also, the profit of Islamic Murabaha deposits increased by 602% due to higher interest rates as well as the increase in Murabaha deposits amount.The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is The company has achieved a net profit of SAR 65,4 million during the current quarter, an increase of 14% compared to the previous quarter, mainly due to higher income from Tanal (associate company) by 26% because of the high average selling prices.

Also, the profit of Islamic Murabaha deposits increased by 17% due to higher interest rates as well as the increase in Murabaha deposits amount.The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is The company has achieved a net profit of SAR 261,7 million during the current quarter, a decrease of 20% compared to the same period last year, mainly due to lower income from Tanal (associate company) by 17% because of lower land sales volume despite the increase of the selling average prices. In addition, the General & Administrative expenses increased by 139% mainly due to current lawsuits provisions of SAR 10,3 million as well as the approved expenses by the board of directors for the transformation and institutional development.

The cost of revenue has been increased by 17% due to the essential maintenance works to improve the company’s assets, as well as the appointment of new talents in operations.

Also, the profit of Islamic Murabaha deposits increased by 553% due to higher interest rates as well as the increase in Murabaha deposits amount.Statement of the type of external auditor's report Unmodified conclusionReclassification of Comparison Items It has been reclassification comparative figures compatible with the display tab for the current period.Additional Information During the current period of 2022, the entire equity investment portfolio in Tadawul, with a total value of approximately SAR 61 million was liquidated which resulted in profits of SAR 27 million on the sale of investments. This profit has been transferred from comprehensive income to retained earnings in accordance with IFRS No.9.

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