Emaar, The Economic City announces its Interim Financial results for the Period Ending on 2025-03-31 (Three Months)
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 204 | 75 | 172 | 185 | 10.27 |
| Gross Profit (Loss) | 77 | -38 | - | 48 | 60.416 |
| Operational Profit (Loss) | 48 | -147 | - | 165 | -70.909 |
| Net profit (Loss) | -123 | -352 | -65.056 | 18 | - |
| Total Comprehensive Income | -130 | -353 | -63.172 | 24 | - |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Shareholders Equity (after Deducting Minority Equity) | 5,136 | 6,054 | -15.163 |
| Profit (Loss) per Share | -0.24 | -0.67 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | -108 | -2.06 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | The increase in revenue by 172% for the current quarter compared to the same quarter of 2024 is attributable to the following:
- Increase in project revenue due to sale of residential lands and units, and Revenue recognition as a result of progress on projects and revision in certain cost estimates.
- Increase in operational revenue mainly driven by lease contracts signed in the industrial valley segment, and higher student intake in one of the subsidiaries operating in the education sector. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | The net loss decreased by 65% compared to the same quarter of the last year. This is mainly attributable to:
- Significant Increase in revenues by 172%.
- Decrease in operational expenses by SAR 20 million due to lower professional fees for the activities related to the Capital Optimization Plan initiatives, decrease in marketing expenses and employee costs.
- Reversal of ECL provision following a reassessment compared to the recorded provision in the corresponding quarter.
- Increase in other income by SAR 15 million due to gain on disposal of Investment Property and reversal of certain excess provisions.
- Decrease in Zakat charges by SAR 72 million, mainly because the corresponding quarter of the previous year included a one-off charge of SAR 66 million related to legacy open Zakat assessments.
However, net loss was decreased despite of the increase in finance cost by SAR 11 million mainly due to increase in loan balance and increase in share of loss from equity-accounted investees by SAR 18 million. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | The revenue increased by 10% for the current quarter compared to the previous quarter as result of revenue recognized due to progress on projects and revision in certain cost estimates. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | The net loss of SAR 124 million increased in the current quarter compared to profit of SAR 18 million in previous quarter is mainly attributable to:
- Decrease in other income by SAR 43 million due to one-off gain being included in previous quarter as result of court ruling in favor of the Group.
- Reversal of provision for Expected credit loss (ECL) of SAR 23 million in current quarter, compared to SAR 125 million in the previous quarter.
- Increase in financial charges expense by SAR 9 million, primarily due to cessation of capitalization of borrowing cost on an item of property and equipment completed during the current quarter.
- Provision for Zakat of SAR 5 million booked during the current quarter, compared to a reversal Zakat provision of SAR 20 million in the previous quarter after annual Zakat reassessment.
Above negative impact is, however, partially offset by decrease in share of loss from equity-accounted investees by SAR 8 million compared to previous quarter. |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | We draw attention to Note 1 of the condensed consolidated interim financial statements, which indicates that the Group incurred a net loss of SR 123 million during the three-months period ended 31 March 2025 and, as of that date, the Group’s current liabilities exceeded its current assets by SR 7,774 million. In addition, the Group has not complied with the requirements of covenants related to long-term borrowing facilities, resulting in the borrowings with outstanding balance of SR 2,566 million as at 31 March 2025 being immediately due and payable on demand in accordance with the terms and conditions of the borrowing agreements. The Group’s ability to meet its obligations as they fall due and to continue its operations without significant curtailment is therefore highly dependent on the successful execution of management’s plans including debt restructuring, obtaining additional funding from shareholders and the sale of properties to generate sufficient cash flows. These events or conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern. Our conclusion is not modified in respect of this matter. |
| Reclassification of Comparison Items | N/A |
| Additional Information | - |
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