Arabian Centres Co. (Cenomi Centers) Announces Its Interim Financial Results for the Period Ending on 30 September 2023 (Nine Months)
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 567.7 | 573.7 | -1.04 | 565.3 | 0.42 |
| Gross Profit (Loss) | 462.8 | 484.6 | -4.5 | 458 | 1.05 |
| Operational Profit (Loss) | 398.2 | 368.2 | 8.15 | 432.1 | -7.84 |
| Net Profit (Loss) after Zakat and Tax | 293.6 | 264.3 | 11.09 | 337.1 | -12.9 |
| Total Comprehensive Income | 293.3 | 266.1 | 10.22 | 327.1 | -10.33 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 1,709.8 | 1,655.9 | 3.25 |
| Gross Profit (Loss) | 1,411.9 | 1,386.8 | 1.81 |
| Operational Profit (Loss) | 1,320.4 | 943.9 | 39.89 |
| Net Profit (Loss) after Zakat and Tax | 1,018.7 | 621 | 64.04 |
| Total Comprehensive Income | 1,008.5 | 630.9 | 59.85 |
| Total Share Holders Equity (after Deducting Minority Equity) | 13,829.9 | 13,682.2 | 1.08 |
| Profit (Loss) per Share | 2.12 | 1.3 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | Net profit increased by 11.1% to SAR 293.6 million in Q3-23 (3 months ended Sept-2023) compared to SAR 264.3 million in Q3-22 (3 months ended Sept-2022). The increase in net profit for the current period was driven mainly by the following:
• Revenues, slightly down by 1.1.% y-o-y to SAR 567.7 million for Q3-23 compared to SAR 573.7 million in Q3-22 reflecting slightly lower occupancy levels. Other revenue streams improved y-o-y, including media sales, which grew by 17.4% y-o-y to SAR 24.4 million in Q3-23 compared to SAR 20.8 million in Q3-22.
• Gross profit, declined by 4.5% y-o-y to SAR 462.8 million with direct costs impacted by a SAR 4.0 million rise in repairs and maintenance costs, and a SAR 5.8 million rise in insurance expenses.
• Operating profit has improved 8.2% to SAR 398.2 million in the quarter compared to SAR 368.2 million in Q3-22 as net fair value gain on investment properties amounted to SAR 60.3 million in Q3-23, compared to a net fair value loss of SAR 4.3 million in Q3-22.
• An increase in finance costs over loans and borrowing from SAR 51.0 million in Q3-22 to SAR 64.4 million in Q3-23 largely offset by a decrease in interest expense on lease liabilities, which declined by 24.0% y-o-y to SAR 26.9 million in Q3-23 compared to SAR 35.4 million in Q3-22. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is | Net profit decreased by 12.9% to SAR 293.6 million in Q3-23 (3 months ended Sept-2023) compared to SAR 337.1 million in Q2-23 (3 months ended Jun-2023). The decrease in net profit for the current period was driven mainly by the following:
• Decrease in operating profit, which declined by 7.8% q-o-q to SAR 398.2 million for Q3-23 compared to SAR 432.1 million in Q2-23, due to a reduction of SAR 12.6 million in net fair value gain of investment properties, an increase of SAR 12.3 million in advertisement and promotion expenses, and the recognition of an impairment loss on accounts receivable amounting to SAR 32.6 million in Q3-23, in contrast to a reversal of SAR 1.2 million in Q2-23. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | Net profit increased by 64.0% to SAR 1,018.7 million in 9M-23 (9 months ended Sept-2023) compared to SAR 621.0 million in 9M-22 (9 months ended Sept-2022). The increase in net profit for the current period was driven mainly by the following:
• Higher revenue, which grew by 3.3% y-o-y to SAR 1,709.8 million for 9M-23 compared to SAR 1,655.9 million in 9M-22. Top-line growth for the period was driven primarily by an increase in net rental revenue which rose by 5.4% y-o-y to SAR 1,562.3 million.
• Gross profit grew by 1.8% y-o-y to SAR 1,411.9 million leading to a gross profit margin of 82.6% in 9M-23, slightly lower compared to 83.8% in 9M-22.
• Operating profit increased 39.9% to SAR 1,320.4 million compared to SAR 943.9 million in 9M-22 as increased provisions for losses on accounts receivable and G&A were more than offset by an increase in other operating income, which reached SAR 274.8 million during 9M-23 compared to SAR 20.0 million in 9M-22 with the recognition of a SAR 238.7 million profit from the sale of Al Raed district land (part of the non-core asset sale program), by the net fair value gain on investment properties amounting to SAR 81.5 million in 9M-23, contrasting with a net fair value loss of SAR 178.4 million reported in 9M-22 and by a 64.5% reduction in other operating expenses to SAR 18.1 million, compared to SAR 52.3 million recorded in 9M-22. |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Reclassification of Comparison Items | Certain comparative figures have been reclassified to conform to the current period’s presentation. |
| Additional Information | Other financial and operational KPIs:
• Cenomi Centers booked an EBITDA of SAR 1,244.1 million in 9M-23, reflecting a 10% y-o-y rise from SAR 1,131.1 million recorded in 9M-22. This increase is attributed to a 1.8% rise in gross profit and a 39.9% increase in operating profit.
• Like-for-like period-end occupancy reached 90.3% at the end of Q3-23, compared to 91.4% at the end of Q2-23.
• Visitor footfall increased by 23.5% y-o-y to record 95.2 million during 9M-23.
For more information regarding Cenomi Centers financial and operational results for the period, please see the Earnings Press Release accompanying this disclosure. The release also includes comments from the CEO.
Sale of owned land (Raseel Al Ihsa) in Granada District in Al Ahsa During the period, Cenomi Centers announced that it had agreed terms on the third transaction of its non-core asset sale program. The 29,384 sqm plot, located in Granada District of Al Ahsa on Prince Miteb Road, directly adjacent to King Abdullah Road sold for around SAR 62.5 million (excluding real estate transaction tax and the brokerage fees) and is the third to be sold as part of the company’s program to sell an identified portfolio of non-core assets worth around SAR 2 billion. The completion of the transaction is pending property title exchange.
Cash Dividend for the first half of 2023 In Q3-23, Cenomi Centers distributed a cash dividend to shareholders totaling SAR 413.25 million. Furthermore, SAR 46.15 million of dues from related parties were settled as part of the distribution to the major shareholders. |
| Attached Documents |
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