Arriyadh Development Co. — Interim / Quarterly Report 2023

Jul 27, 2023

Arriyadh Development Co. announces its Interim Financial Results for the Period Ending on 2023-06-30 ( Six Months )

4150 · 27/07/2023 15:39:19 · Announcement #74993 · View on Saudi Exchange

Arriyadh Development 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	69.57	63.9	8.87	69.3	0.39
Gross Profit (Loss)	40.09	43.28	-7.37	44.3	-9.5
Operational Profit (Loss)	19.07	24.01	-20.57	30	-36.43
Net Profit (Loss) after Zakat and Tax	43.27	57.4	-24.62	32.4	33.55
Total Comprehensive Income	43.27	57.14	-24.27	32.4	33.55
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	138.88	125	11.1
Gross Profit (Loss)	84.39	83.37	1.22
Operational Profit (Loss)	49.07	56.22	-12.72
Net Profit (Loss) after Zakat and Tax	75.67	196.3	-61.45
Total Comprehensive Income	75.67	204.55	-63.01
Total Share Holders Equity (after Deducting Minority Equity)	2,229	2,137	4.3
Profit (Loss) per Share	0.43	1.1
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 achieved a net profit of SAR 43.3 million for the current quarter, a decrease of 25% compared to the same quarter of the previous year, mainly due to: -

-Decrease in income from Tanal Company (an associate company) by 37% compared to the same quarter of the previous year is due to Tanal’s decision to hold off sales in order to evaluate optimal usage of remaining plots (estimated at 371,000 square meters, of which the company's share is 257,000 square meters). due to creating a provision for receivables, in addition to consulting expenses for institutional development and recruitment of administrative competencies in accordance with the approved plan of the board of directors.

- Increase in costs of revenue due to creating a provision for meat market rent in addition to, costs of newly acquired office tower, also attracting a qualified team in the operational sectors as per the Board of Directors approved plan.

- Increase in general and administrative expenses due to creating a provision for receivables, in addition to consulting expenses for institutional development and recruitment of a qualified team as per the Board of Directors approved plan.

It should also be noted that there was an increase in operating revenue of the company’s centers and markets by 9% due to increased occupancy rate, and re-pricing of some services. In addition, revenue of newly acquired office tower in Al Malga was added to operating revenue.

Profits of Islamic Murabaha deposits increased by 55% as a result of increase in interest rates.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 achieved a net profit of SAR 43.3 million for the current quarter, an increase of 34% compared to the same quarter of the previous year, mainly due to:

- Increase in income from Tanal Company (an associate company) by 100% compared to previous quarter due to increase in volume of sold area and increase in average selling price per square meter during this quarter compared to previous quarter.

- Profits of Islamic Murabaha deposits increased by 17% as a result of increase in interest rates.

Despite increase in operational costs by 18% due to increase in cleaning and maintenance costs. In addition to, increase in general and administrative expenses by 47% due to creating a provision for receivables.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 achieved a net profit of SAR 75.7 million for the current quarter, a decrease of 61% compared to the same quarter of the previous year, mainly due to: -

- Decrease in income from Tanal Company (an associate company) by 86% compared to the same period of the previous year is due to Tanal’s decision to hold off sales in order to evaluate optimal usage of remaining plots (estimated at 371,000 square meters, of which the company's share is 257,000 square meters). Despite increase in average selling price per square meter during the period compared to the same period of the previous year.

- Increase in costs of revenue due to creating a provision for meat market rent. In addition to, costs of the newly acquired office tower, also attracting a qualified team in the operational sectors as per the Board of Directors approved plan.

- Increase in general and administrative expenses due to creating a provision for receivables, in addition to consulting expenses for institutional development and recruitment of a qualified team as per the Board of Directors approved plan.

- It should be noted that there was an increase of 85% in profits of Islamic Murabaha deposits as a result of the increase in interest rates.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 2022, the entire equity investment portfolio in Tadawul was liquidated with a value of c. SAR 61 million, which resulted in realizing investment sales profits of c. SAR 27 million. This profit was transferred from other comprehensive income to retained earnings in accordance with international accounting standards (IFRS No.9).

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.