Makkah Construction and Development (4100) Q2 2024 earnings summary

Executive summary

• Interim consolidated financials for the three- and six-month periods ended June 30, 2024, were reviewed with no material misstatements found by the independent auditor.

• The company operates in construction, property development, and hospitality near Al Masjid Al Haram, with subsidiaries in hotel and investment activities.

Financial highlights

• Revenue for the six months ended June 30, 2024, was SAR 535.5 million, up from SAR 347.9 million year-over-year.

• Net profit for the six months was SAR 255.98 million, compared to SAR 187.57 million for the same period last year.

• Gross profit for the six months was SAR 294.1 million, up from SAR 237.6 million year-over-year.

• Basic and diluted EPS for the six months was SAR 1.55, compared to SAR 1.14 year-over-year.

• Unrealized gain from revaluation of financial assets at fair value through OCI was SAR 134.95 million for the six months.

Outlook and guidance

• Management notes that interim results may not reflect full-year performance due to seasonality, with higher revenues during Hajj, Umrah, and summer vacation periods.

• The company is confident in its ability to continue as a going concern, with sufficient resources for near-term operations.