Latest news with #SR1.87
Saudi Gazette
5 days ago
- Business
- Saudi Gazette
Red Sea International achieves 44% growth in operating profits for H1 2025
Red Sea International Company announced its consolidated financial results for the first six months of 2025, reporting a net profit of SR1.87 million, a 168% improvement compared to the first half of 2024. However, net profit for Q2 2025 reached SR6.39 million, representing a 31% decline compared to Q2 2024. By the end of Q2 2025, revenues for the first half reached SR1,479 million, marking a 54% increase compared to H1 2024. Q2 2025 revenues stood at SR779 million, up 4% compared to Q2 2024. This growth was mainly driven by improved performance and higher project completion rates. Operating profit for the first six months of 2025 reached SR42.8 million, an increase of 44% compared to the same period in 2024. Operating profit for Q2 2025 stood at SR23.72 million, down 10% compared to Q2 2024. This performance improvement in the first half of the year came despite lower overall profitability, primarily due to accounting adjustments related to the Amortization of Purchase Price Allocation (PPA). In 2024, the company carried out a PPA for the acquisition of First Fix Company for Electrical Works Ltd., which resulted in an accounting loss of SR121.75 million in 2024 and SR48.7 million in H1 2025. These losses are purely accounting adjustments required under the International Financial Reporting Standards (IFRS) and do not represent actual operational losses. This has been clarified in the notes to the consolidated financial statements for the periods ending 31 March 2025 and 30 June 2025. To address the impact of the PPA provision, the company is implementing the Board of Directors' recommendation to increase capital by converting debts owed to minority shareholders (the sellers) in First Fix — specifically, the deferred portion of the acquisition price — into shares. The company has submitted this request to the Capital Market Authority, and it is currently under review, with a decision expected soon.
Arab News
26-03-2025
- Business
- Arab News
Jewelry spending fuels Saudi POS surge for 2nd consecutive week
RIYADH: Saudi Arabia's point-of-sale transactions climbed 6.3 percent to SR14.4 billion ($3.8 billion) in the week ending March 22, with jewelry once again leading the growth. The latest figures from the Saudi Central Bank, also known as SAMA, showed that spending in the sector registered the largest increase in the value of transactions at 29.9 percent to reach SR544.4 million. Jewelry also saw a 34.4 percent surge in terms of the number of transactions, reaching 403,000. The hotel sector ranked second with a 24.8 percent surge in transaction value to SR440 million. Spending on clothing and footwear followed, rising 24.5 percent, holding the second-largest share of POS transactions at SR1.87 billion. Overall transactions increased by 22.4 percent to 12 million. Expenditure on transportation edged up by 6.9 percent to SR950.8 million, and spending in restaurants and cafes increased by 3.7 percent, bringing the total value of transactions to SR1.5 billion. The smallest spending increases were in the telecommunication and the construction sectors, rising by 0.2 percent to SR114.8 million and 0.03 percent to SR308 million, respectively. Spending on education saw the steepest decline for the second week in a row, dropping 37.2 percent to SR88.2 million, following a 144.6 percent surge during the week from March 2 to 8 as students returned from the winter break. Expenditure on public utilities saw a 4.5 percent dip to SR52.4 million, and spending on food and beverages recorded a 2 percent drop to SR1.88 billion, but still held the largest share of the POS. Miscellaneous goods and services accounted for the third biggest POS share, with a 5.8 percent uptick, reaching SR1.7 billion. Spending in the leading three categories accounted for approximately 38.1 percent, or SR5.5 billion, of the week's total value. Geographically, Riyadh dominated POS transactions, representing around 34.1 percent of the total, with spending in the capital reaching SR4.9 billion — a 4.6 percent increase from the previous week. Jeddah followed with a 9.8 percent increase to SR2.1 billion, and Makkah came in third at SR933.2 million, up 14 percent. Tabuk experienced the smallest increase in spending, edging up by 0.6 percent to SR248.2 million. Buraidah and Makkah saw the largest increases in terms of number of transactions, surging by 4.2 percent and 3 percent, respectively, to 4.4 million and 9.8 million transactions.
