Jabal Omar Development Company (4250) Q3 2024 earnings summary

Executive summary

• Reported a net loss of SR 151.3 million for the nine months ended 30 September 2024, compared to a net profit of SR 237.5 million in the same period last year.

• Revenue increased to SR 1,474 million for the nine-month period, up from SR 1,006 million year-over-year.

• The company’s current liabilities exceeded current assets by SR 529.8 million as of 30 September 2024.

• Material uncertainty exists regarding the company’s ability to continue as a going concern, dependent on asset sales and new financing.

• Two new hotels were fully commissioned during the period, expected to boost future revenues.

Financial highlights

• Revenue for the nine months rose 46% year-over-year to SR 1,474 million.

• Net loss for the nine months was SR 151.3 million, compared to a net profit of SR 237.5 million in the prior year.

• Gross profit for the nine months was SR 511.5 million, up from SR 406.5 million year-over-year.

• Finance costs increased to SR 520.7 million from SR 305.4 million year-over-year.

• Basic and diluted loss per share was SR (0.13) for the nine months, versus earnings per share of SR 0.21 last year.

Outlook and guidance

• Management’s plan to address liquidity includes land sales, operationalizing new hotels, and securing new debt facilities.

• Cash flow forecasts for the next 12 months indicate a net positive position, contingent on successful execution of the plan.