Red Sea Housing Services Company posted SAR 29.27 million net earnings for Q4 2014 , falling 32.73% year-on-year from SAR 43.51 million and 32.12% quarter-on-quarter from SAR 43.12 million.
The full-year net profit increased by 2.57% to SAR 156.69 million, compared with SAR 152.77 million in the year-ago period.
The earnings per share rose from SAR 2.55 to SAR 2.61.
Q4 profit decline y/y was ascribed by the company to decrease in gross profit by 8.71% from SAR 87.24 million to SAR 79.64 million, in addition to increase in general and administrative expenses as a result of increase in provisions for Libya factory by SAR 5.78 million, the company said. It added that high expenses resulting from executing the pillars of the 2020 Growth Strategy also weighed on the results.
Q4 profit decline q/q was due to increase in general and administrative expenses and rise in selling and marketing expenses in the current quarter as compared to the previous quarter.
Red Sea Housing said FY14 profit growth was driven by increase in total revenues by 13.75 %, which resulted from increase in building sales by 9.16% and increase in rental revenues by 19.53%. In addition, gross profit increased by 6.85% (SAR 18.91 million) and selling and marketing expenses declined by 10.92 %.
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