Financial Results Revenues increased by 38% at approximately 108 Mn SAR in 2023 , from 281 Mn SAR at the end of 2022 to 389 Mn SAR at the end of 2023 This is attributed to the significant growth in sustainable operating revenues during 2023 , as well as the optimal utilization of ARDCO’s assets and rise in occupancy rates within our centers and markets In 2023 , the public good services sector saw a growth in revenues by 19% at approximately 22 Mn SAR as a result of the creation of new revenue sources within the market and an increase in leasing revenues The commercial centers sector also recorded a growth in revenues of approximately 12% at 17 Mn SAR as a result of the rise in occupancy rates , reaching 94% , which is an unprecedented achievement Oteiqah Central Market in particular saw its occupancy rate reach 95% by the end of 2023 compared to 62% in the previous year In addition to the increase in leasing income AlTameer International Car Auction also witnessed a growth in revenues beginning from Q4 2023 , as a driving school began operating towards the end of 2023 We have also attracted a number of financial institutions to operate within the auction The company was also able to utilize its for-sale lands and achieve revenues of approximately 41 Mn SAR by selling part of its underutilized lands in Tilal AlRiyadh , which was purchased and developed in 2002 The company was also able to utilize available cash and achieve an increase in Islamic Murabaha revenues by approximately 17 Mn SAR , reaching 38 Mn SAR in 2023 , compared to 21 Mn SAR in 2022 as a result of the rise in interest rates Total costs amounted to 195 Mn SAR for the year ending in December 31 , 2023 , compared to 158 Mn SAR for the year ending December 31 , 2022 The 23% increase is due to higher maintenance costs , as we contracted a new maintenance and cleaning contractor for the company’s markets and centers This resulted in raising and improving the operational efficiency of our buildings and infrastructure , which in turn led to raising occupancy rates and improving customer experience , as well as obtaining the necessary government licenses to carry out our activities ARDCO also continued its strategy in attracting high quality talents to drive forth our operational plans and achieve the company’s strategic goals In addition , we continued to build provisions for doubtful debts In 2022 we reviewed all customer balances since the company’s inception , resulting in the formation of provisions of approximately 13 Mn SAR in 2022 and approximately 125 Mn SAR in 2023 , commensurate with the ages of the debts in question
Our share in the profits of Tanal , an associate company , amounted to approximately 97 Mn SAR for the year ending on December 31 , 2023 , compared to 190 Mn SAR for the year ending on December 31 , 2022 , despite the increase in the average price per square meter during the year 2023 The decrease of 49% is attributed to the decrease in Tanal land sales As for other lands , approximately 132 thousand m2 were sold at the end of 2023 , compared to 312 thousand m2 at the end of 2022 Net income before zakat amounted to approximately 291 Mn SAR for the year ending December 31 , 2023 , compared to 313 Mn SAR for the year ending December 31 , 2022 , a 7% decrease This decrease of 22 Mn SAR is mainly attributed to a decrease in the company’s share of profits in Tanal , which amounted to 93 Mn SAR This decrease was offset by an increase in profits from the company’s activities , amounting to 72 Mn SAR Zakat for the year amounted to 20 Mn SAR for the year ending December 31 , 2023 , compared to 13 Mn SAR for the year ending December 31 , 2022.
Total net income
300 (Mn SAR) 191
271 (Mn SAR)
174
109
97
2022
2023
Net profit without Tanal
Tanal Profits
28
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