Makkah Construction and Development (4100) Q4 2024 earnings summary

Executive summary

• Achieved record revenue, EBITDA, and net income in 2024, driven by strong performance across hospitality, commercial, and Hajj segments.

• Strategic asset optimization and investments contributed to growth, including increased returns from affiliates and asset improvement programs.

• Significant increase in the number of pilgrims and rental rates, supporting robust top-line growth.

Financial highlights

• Revenue reached SAR 837 million, up 15% year-over-year, marking a historical high.

• EBITDA rose 21% to SAR 464 million from SAR 383 million; net income increased 23% to SAR 411 million from SAR 334 million.

• Earnings per share grew to SAR 2.49 from SAR 2.03 year-over-year.

• Operating cash flow declined 14% to SAR 337 million; free cash flow decreased 15% to SAR 292 million from SAR 344 million.

• Capex increased 5% year-over-year to SAR 45 million.

• Gearing ratio improved to -0.1% from -10.7%.

Outlook and guidance

• Plans to leverage over SAR 6 billion in funding potential over the next five years.

• Focus on enhancing room rates, expanding rental space, and pursuing vertical acquisitions in hospitality and commercial sectors.

• Asset improvement and refurbishment program expected to add SAR 100 million in annual EBITDA.