Dar Al Arkan Real Estate Development Company (4300) Q4 2024 earnings summary

Executive summary

• FY 2024 revenues rose 38.9% year-over-year to SAR 3,759 million, driven by increased sales of bulk land, development properties, residential units, off-plan sales, and project management revenue.

• Gross profit increased 49.5% year-over-year, with margins improving by 3 percentage points due to favorable product mix.

• EBITDA grew 19.0% year-over-year, supported by higher gross margins and other income, partially offset by lower income from associates.

• Q4 2024 revenues surged 152.9% year-over-year and 10.3% sequentially, with gross profit up 165.9% year-over-year and 8.8% sequentially.

Financial highlights

• FY 2024 revenue: SAR 3,759 million (up 38.9% YoY); gross profit: SAR 1,600 million (up 49.5% YoY); gross margin: 42.6%.

• FY 2024 EBITDA: SAR 1,716 million (up 19.0% YoY); EBITDA margin: 45.6%.

• FY 2024 net income: SAR 787.9 million (up 29.0% YoY); net margin: 21.0%.

• Q4 2024 net income: SAR 334.5 million (up 71.7% YoY); EBITDA: SAR 564.5 million (up 35.2% YoY).

• Book value per share increased to SAR 19.5 from SAR 18.8 in 2023.

Outlook and guidance

• Strong liquidity and cash position support continued investment in development properties.

• Management expects continued growth in non-oil GDP and robust demand for residential housing, supported by Vision 2030 targets.

• Government expansionary spending and ongoing housing programs are expected to sustain sector growth.