Financial results of the public benefit sector
Commercial Centers Financial Results
Mn SAR Year Ending December 31
Mn SAR Year Ending December 31
All amounts in millions unless stated otherwise
2023
2022 113،5
All amounts in millions unless stated otherwise
2023
2022
Revenue
135،3
Revenue
162،5
145
Operating Expenses
25
15،5
Operating Expenses
97
76 69
Net Income
110،3
98
Net Income
65.5
Net Value of Invested Assets
84،5
85،3 96%
Net Value of Invested Assets
1،168
1،295 82%
Occupancy Rate
98%
Occupancy Rate
91%
The public good services sector witnessed an exceptional growth in revenues in 2023 by 22 Mn SAR , at a rate of 19% compared to 2022 , as new revenue sources were created and occupancy rates increased , in addition to an increase in rental and operating revenues compared to 2022 Operating costs also increased by approximately 95 Mn SAR , as we invested in attracting top tier talents to develop our markets and achieve sustainable growth In addition , we contracted with a new service provider with extensive experience to provide maintenance and cleaning services , which contributed to raising the efficiency of our buildings , improving cleanliness levels , obtaining necessary government licenses to carry out activities , and improving customer experience within the markets This reflected positively on occupancy rates and the growth of the market’s total profit by 123 Mn during 2023 , at a rate of 13% over 2022 ARDCO also set forth a plan through which we aspire to realize even more successes and achievements , investing our efforts into making optimal use of our capabilities through • Consolidating relationships with traders and dealers in the market by periodically holding meetings to receive feedback and implement suggestions • Studying the market’s current master plan in order to improve operational capacity • Establishing global partnerships to identify best practices and transfer knowledge in the fresh produce sector • Working to establish principles of sustainability , raise quality standards , and further support local produce • Developing operational systems to keep pace with market demands and linking them with the company’s ERP system
During 2023 , ARDCO paid special attention to raising the operational efficiency of all our markets By repurposing and capitalizing on underutilized spaces opportunistically and creating new , sustainable revenue sources for the companyThis contributed to an exceptional growth in revenues during 2023 by 17 Mn SAR , at a rate of 12% compared to 2022 In addition , pricing policies and strategies were revised , which contributed to a significant increase in occupancy rates during 2023 , at a rate of 9% in all of the company’s markets and centers , particularly Oteiqah Central Market , where occupancy rates increased from 62% to 95% In addition , revenues from the office building were recorded for the entire year , as it was acquired in Q4 2022 The car auction also witnessed the introduction of a driving school starting in the Q4 2023 In 2023 , the company also focused on raising the efficiency and quality of buildings , as it contracted with a company with extensive experience to provide facility maintenance and cleaning services All operational systems were digitized and top tier talent was attracted to manage our centers , which contributed to obtaining the necessary government licenses for our assets , as operational costs amounted to 945 Mn SAR in 2023
Land Sales Financial Results
Mn SAR Year Ending December 31
All amounts in millions unless stated otherwise
2023
2022
Revenue & Other Revenue
52.6
0 0 0
Cost of Land Sales
3،4
Net Revenue
49.2
We were able to capitalize on our underutilized investment assets available for sale and achieve revenues of approximately 41 Mn SAR , by selling a portion of our Tilal AlRiyadh lands , which were purchased and developed in 2002.
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