Rasan (8313) Q3 2024 earnings summary

Executive summary

• Achieved robust revenue growth of 29% year-over-year for the nine-month period of 2024, despite challenging market conditions.

• Net profit increased by 53% year-over-year, with EPS rising 47.1%.

• The group completed an IPO in June 2024, issuing 5.3 million new shares and listing on Tadawul.

• Board recommended a capital increase post-period by capitalizing retained earnings for an employee share program.

• Product diversification and expansion in motor leasing and retail renewals contributed to growth.

Financial highlights

• Revenue for 9M 2024 was SAR 240.5M, up from SAR 186.4M in 9M 2023 (+29% YoY).

• Net income for the nine months was SAR 54.9M, compared to SAR 36.0M for the same period last year.

• Gross profit rose to SAR 145M (+32.5% YoY), with gross margin improving to 60.2%.

• EBITDA increased to SAR 68M (+40.6% YoY), with margin at 28.2%.

• Cash and cash equivalents increased to SAR 384.6M as of 30 September 2024, from SAR 116.5M at year-end 2023.

Outlook and guidance

• Continued focus on product diversification and technology investment to sustain growth.

• Emphasis on bundling, cross-selling, and expanding the motor leasing insurance business.

• Management notes that interim results are not necessarily indicative of full-year performance.

• Board has recommended a further capital increase for an employee share program, pending shareholder and regulatory approval.