Arriyadh Development Co. — Interim / Quarterly Report 2023

May 8, 2023

Arriyadh Development Co. announces its Interim Financial Results for the Period Ending on 2023-03-31 ( Three Months )

4150 · 08/05/2023 15:26:47 · Announcement #73471 · View on Saudi Exchange

Arriyadh Development Co. announces its Interim Financial Results for the Period Ending on 2023-03-31 ( Three Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	69.3	61.1	13.42	70.2	-1.28
Gross Profit (Loss)	44.3	40.1	10.47	46.2	-4.11
Operational Profit (Loss)	30	32.2	-6.83	25.4	18.11
Net Profit (Loss) after Zakat and Tax	32.4	139	-76.69	38.6	-16.06
Total Comprehensive Income	32.4	147.4	-78.02	39.8	-18.59
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Total Share Holders Equity (after Deducting Minority Equity)	2,230	2,168	2.86
Profit (Loss) per Share	0.18	0.78
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 32.4 million for the current quarter, a decrease of 78% compared to the same quarter of the previous year, mainly due to: -

-The decrease in income from Tanal Company (an associate company) by 100% compared to the same quarter of the previous year due to Tanal’s decision to hold off sales in order to evaluate the optimal use of the remaining plots (estimated at 392,000 square meters, of which the company's share is 275,000 square meters).

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

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

-Increase in Zakat expenses compared to the same quarter of the previous year.

It should also be noted that there was an increase in operating revenue of the company’s centers and markets by 13% due to increased occupancy rate, and the re-pricing of some services. In addition, the revenue of the acquired office building in Al Malga was added to operating revenue.

Profits of Islamic Murabaha deposits increased by 140% as a result of the increase in interest rates and the volume of invested Murabaha deposits.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 32.4 million for the current quarter, a decrease of 78% compared to the same quarter of the previous year, mainly due to: -

-Decrease in income from Tanal Company (an associate company) by 100% compared to the same quarter of the previous year due to Tanal’s decision to hold off sales in order to evaluate the optimal use of the remaining plots (estimated at 392,000 square meters, of which the company's share is 275,000 square meters).

-Increase in costs of revenue due to creating a provision for meat market rent.

It should also be noted that profits of Islamic Murabaha deposits increased by 36% as a result of the increase in interest rates and the volume of invested Murabaha deposits.

In addition, general and administrative expenses dropped by 31% due to a drop in receivables provision by 31%.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).

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