Real estate development companies listed on the Saudi Stock Exchange (Tadawul) posted profits of approximately 781 million riyals during the first quarter of 2015, equivalent to 3.5% of the market’s total profits, compared to approximately 513 million riyals for the same quarter of 2014—an increase of about 52%. It also represented a decline of 29% compared to the previous quarter, when profits were approximately 1,110 million riyals.
As for the key highlights of the income statements for companies listed in the sector during the first quarter, we find that the real estate development sector achieved sales of approximately 1.589 million riyals during the first quarter of 2015, with the cost of these sales amounting to approximately 630 million riyals, meaning that the gross profit was approximately 959 million riyals—that is, the sector’s gross profit margin stood at 60% of its sales volume.
The sector also generated operating profits of approximately 779 million riyals, equivalent to 49% of its sales volume, After accounting for non-operating expenses and revenues, zakat provisions, taxes, and minority interests for the quarter, the sector achieved a net profit of approximately 781 million riyals, equivalent to 49% of its sales volume.
