On 2026-08-05 08:17:40 (Saudi Time), BAAN Holding Group Co. announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, sales/revenue declined 9.769% YoY to SAR 311.43 million (from SAR 345.15 million), primarily driven by lower revenue from the hospitality and entertainment segments, both impacted by geopolitical events in the region, partially offset by higher revenue from food service and catering activities. Despite the revenue decline, net profit attributable to shareholders swung to SAR 53.32 million from a net loss of SAR 16.65 million in the same period of the prior year, an improvement of SAR 69.97 million, mainly due to capital gains of SAR 69.53 million from the sale of investments recognized during the current period, complemented by lower direct costs, reduced selling, marketing, general and administrative expenses, gains from lease contract terminations under IFRS 16, lower finance costs, and improved operational efficiency.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined 4.4% to SAR 152.21 million (from SAR 159.21 million in the previous quarter), primarily driven by lower hospitality segment revenue in certain hotels, partially offset by higher entertainment segment revenue boosted by the Eid season and start of summer vacation. Net profit fell sharply by 91.37% to SAR 4.23 million (from SAR 49.09 million in the prior quarter), almost entirely due to the absence of net capital gains from the sale of investments that had contributed SAR 69.53 million in the previous quarter.

Other Items

The external auditor issued an unmodified conclusion with no additional comments or reservations noted. No accumulated losses were reported in the current period, as the company announced the completion of its strategic plan to extinguish accumulated losses through utilization of the share premium balance, following approval by the Extraordinary General Assembly held on 28 June 2026, as previously announced on Tadawul on 13 May 2026. As a result, the company stated that it is no longer within the scope of companies whose accumulated losses amount to 20% or more of their share capital, and that the necessary procedures will be undertaken to remove the red mark appearing next to the company's name on the Tadawul screen. Total shareholders' equity (after deducting minority equity) stood at SAR 874.86 million for the current period, compared to SAR 192.48 million for the same period of the previous year, representing an increase of 354.519%. Gross profit for the six-month period amounted to SAR 66.69 million, down 22.56% from SAR 86.12 million in the same period of the prior year, while operating profit amounted to SAR 11.12 million, down 22.07% from SAR 14.27 million. Total comprehensive income for the period amounted to SAR 52.51 million, compared to a total comprehensive loss of SAR 14.22 million for the same period of the previous year. Earnings per share for the current period stood at SAR 0.131, compared to a loss per share of SAR 0.053 in the same period of the prior year. No reclassification of comparison items was reported.

Original announcement:

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