Al Majdiah Q1 2025 earnings surge 110% to SAR 101.9M

Dar Al Majed Real Estate Co. (Al Majdiah), which is set to list its shares on the Main Market (TASI), reported a net profit of SAR 101.9 million for Q1 2025, marking a 110% leap from SAR 48.4 million in the same quarter of 2024.

This came as the gross profit margin increased to 31% in Q1 2025, from 19% a year earlier. Despite lower overall revenues, the units sold during the current period leveraged significantly higher margins.

During the same period, the operating profit margin rose to 26%, from 15% in Q1 2024, supported by lower general and administrative expenses.

The company, in addition, recorded SAR 56 million in fair value gains on investment properties in Q1 2025, compared to none in the same quarter of 2024.

However, revenues dropped 34% year-on-year (YoY) by the end of Q1 2025. This was due to a 53% decrease in property unit sales, along with lower income from development, maintenance, and rentals.

The Saudi developer generated SAR 72.3 million in land sales gains in Q1 2025, compared to zero in the same period last year.

Meanwhile, finance charges reached SAR 4.7 million in the first three months of this year, up from SAR 583,700 in Q1 2024.

Sequentially, the three-month bottom line skyrocketed by 217.9% from SAR 32.05 million in Q4 2024.

Total shareholders' equity, after minority interest, reached SAR 993.81 million at the end of Q1 2025, advancing from SAR 714.40 million a year before.