Red Sea Housing Services Company posted SAR 43.12 million net earnings for Q3 2014, falling 2.93% year-on-year from SAR 44.42 million and 5.74% quarter-on-quarter from SAR 40.78 million.
The nine-month net earnings increased 16.62% to SAR 127.42 million, compared with SAR 109.26 million in the year-ago period.
The earnings per share (EPS) rose from SAR 1.82 to SAR 2.12.
The marginal decrease in Q3 net income y/y was due to: 1) The decline in gross profit from SAR 80.29 million in the third quarter of last year to SAR 75.60 million achieved in the same period of this year, which resulted from the rise in the cost of revenues by 8.72% during the current quarter due to the increase in raw material prices; and 2) the growth in general and administrative expenses by 18.52% in the current quarter compared to the same quarter of previous year.
The company ascribed the growth in net income for the first nine months of FY14 as compared to the same period of last year was due to 1) the rise in total revenues by 17.09 % as a result of the increase in building sales by 11.60% and the increase in rental revenues by 24.26%; and 2) the increase in gross profit by 14.03% in the current period to SAR 215.51 million; and 3) the decrease in selling and marketing expenses by 3.95 % in the current period compared to the same period of last year.
The rise in net Income for Q3 compared to the previous quarter was due to; 1) the increase in total revenues by 5.97% resulting from the rise in building sales by 18.90% in the current quarter compared to previous quarter; and 2) the growth in gross profit margin in the current quarter to 26.66% as compared to 25.22% achieved in the previous quarter, the company said.