On 2026-08-05 08:19:35 (Saudi Time), Retal Urban Development Company announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ended 30 June 2026, sales/revenue increased 14.268% YoY to SAR 1,206.1 million (from SAR 1,055.5 million), driven primarily by a 15% increase in revenue from development contracts due to higher completion rates across ongoing projects and the commencement of new projects, despite a slower sales pace and changes in the sales and revenue mix that weighed on profitability margins. Net profit attributable to shareholders declined 68.726% YoY to SAR 42.0 million (from SAR 134.3 million), mainly due to an unfavorable shift in the sales and revenue mix of ongoing projects, higher cost of revenues from costs recognized at the final stages of project completion, increased operating expenses driven by business development and sales and marketing activities, a decline in the company's share of results from equity-accounted investments, and the non-recurrence of a SAR 32.7 million gain recognized in the prior period from the sale of a portion of the company's owned units in a real estate fund.

Quarter-on-Quarter Performance Drivers

QoQ revenue rose 8.884% to SAR 628.7 million (vs. SAR 577.4 million in the prior quarter), driven by an 8.7% increase in development contract revenues from higher project completion rates, partially offset by lower revenues from real estate funds following the completion of one fund in the previous quarter. However, the company swung to a net loss attributable to shareholders of SAR 17.2 million from a net profit of SAR 59.3 million in the prior quarter, primarily due to the drop in real estate fund revenues, higher operating expenses (business development and sales & marketing costs), a decline in the share of results from equity-accounted investments, and higher cost of revenues from costs recognized at the final stages of completion of several projects.

Other Items

The external auditor issued an unmodified conclusion with no additional comments, reservations, or other matters noted. Some comparative figures have been reclassified to conform with the current period presentation. No material risk warnings, going concern uncertainties, debt covenant breaches, or accumulated loss disclosures were reported in this announcement.

Original announcement:

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