Alandalus Property, a leading real estate company in Saudi Arabia, has posted a net profit of SR15.1 million ($4 million) in the second quarter (Q2) of the year, marking a 24 per cent increase from SR12.2 million in Q2 2018.
The increase in profit is primarily attributable to increases in share of income from associates and decreases in finance costs and Zakat provision, the company said in a statement.
Net profit in H1 2019 grew to SR35.4 million, an 8.3 per cent increase from SR32.7 million in H1 2018.
The company’s Q2 2019 revenue grew by 3 per cent to SR42.3 million, compared to SR41.3 million in Q2 2018. With the launch of Al Marwa Center at the end of March 2019, revenue for the quarter was positively impacted by an uptick in the company’s retail segment despite discounts extended to numerous tenants. H1 2019 revenue remained relatively flat at SR82.3 million, compared to SR82.1 million in H1 2018 notwithstanding a slight drop in revenues from the Company’s hospitality segment.
Gross profit in Q2 and H1 2019 was SR23.6 million and SR47.2 million respectively, versus SR24.1 million and SR48.9 million from the same period last year. The decrease is due to higher operating costs associated with the launch of Al Marwa Center.
The company reported operating profit of SR25.4 million in Q2 2019, a 13 per cent jump from SR22.5 million in Q2 2018. H1 2019 operating profit grew 6.2 per cent to SR54.5 million, compared to SR51.3 million for the same period of 2018. This was driven by the company’s prudent management of general & administration expenses and from increases in the share of income from associates and in other revenue, the statement said.
Fawaz bin Huwail, chief financial officer, said: “Our latest financial results continue to show steady growth; we’ve witnessed a substantial increase in our operating profit as a result of the successful expansion of our retail segment and our careful management of G&A expenses. Despite a slight drop this quarter in our hospitality business, the Company’s net profit grew significantly as we also continue to enjoy healthy returns from our investments in associates.”
Alandalus Property continues to make significant investments in two of its largest malls, Alandalus Mall and Hayat Mall, with the goal of reimagining customer engagement and ultimately enhancing visitor experiences. At Alandalus Mall work is underway to build one of largest cinema complexes in Saudi Arabia, in partnership with Empire Cinemas. The project is set to open in Q1 2020.
Within the healthcare sector, which the Company entered to further diversify its activities, Alandalus Property is developing a new hospital called West Jeddah Hospital near its flagship Alandalus Mall - in a joint venture with the Dr Sulaiman Al-Habib Medical Group - and due to open in Q2 2022.
Hathal Al Utaibi, chief executive officer of Alandalus Property, said: “Strong demand for Alandalus Property’s retail offerings continues to drive steady growth across our business portfolio leading to another robust financial performance.”
“As evidenced by the recent launch of Al Marwa Centre and the continuous enhancements being made to our existing portfolio, we remain committed to creating commercial destinations that effectively engage our diverse consumer base. I am confident that our strong brand, strategic partnerships, differentiated offerings and consumer-centric approach will continue to enhance our competitive positioning across the Saudi market for years to come,” he added. . – TradeArabia News Service
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