BAAN loses SAR 201.9M in 2025, SAR 158.8M in Q4

BAAN Holding Group Co. swung to a net loss of SAR 201.9 million in 2025, compared to a net profit of SAR 5.2 million in 2024.

The losses were mainly due to a 4.37% year-on-year (YoY) decline in the 2025 revenue, reflecting mixed performance across segments while the hotels segment saw revenue drop of SAR 25.26 million for the same year, weighed by lower occupancy rates and average hotel room prices in certain regions, particularly Eastern Province and Tabuk, amid increased supply and intensifying competition.

This was partially offset by improved performance in Western Province, including Jeddah and Yanbu, as well as Hail, supported by higher occupancy rates and improved pricing. However, revenue was also impacted by the temporary closure of a Riyadh hotel for renovation and upgrade works.

The entertainment segment, meanwhile, recorded a revenue decline of SAR 45.68 million in 2025. This was due to weaker footfall and reduced average spending across several centers. This followed heightened competition, broader entertainment options, especially during peak seasons, and shifting consumer behavior.

In addition, in 2025, the company recorded impairment provisions on certain assets and losses from the disposal of assets related to the closure of underperforming branches, as part of efforts to restructure its portfolio and improve asset efficiency, while also booking expected credit loss provisions on receivables in line with international accounting standards.

The comparative period had included non-recurring income, namely insurance compensation of SAR 24.8 million and the reversal of provisions worth SAR 12.7 million following the collection of related receivables.

Meanwhile, operating expenses for 2025 rose due to the expansion of the catering segment, alongside higher marketing and general expenses, while the company also incurred operating and pre-operating costs related to catering projects under its expansion strategy, which temporarily weighed on profitability.

In Q4 2025, BAAN widened its net loss to SAR 158.77 million, compared to SAR 12.41 million in the prior-year period.

Compared to Q3 2025, the company also deepened its net loss from SAR 12.41 million.

Shareholders’ equity, no minority interest, shrank to SAR 2.70 million as of Dec. 31, 2025, from SAR 206.64 million a year earlier.

Accumulated losses stood at SAR 312.73 million by 2025-end, accounting for 99.28% of capital.

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