Net profits down by 92% at Saudi Arabia's Dar Al Arkan in Q1 2019
Revenues at real estate firm, which is developing the Roberto Cavalli-designed Mirabilia Villas in Riyadh, declined by 70%
Net profits after zakat and tax at Dar Al Arkan, the Saudi Arabian real estate company behind the Roberto Cavalli-designed Mirabilia Villas in Riyadh, declined by more than 90% in the first three months of 2019.
According to the group’s interim financial results on Saudi bourse Tadawul, Q1 net profits stood at $6.8m (SAR25.5m), a 92% fall on Q1 2018’s corresponding figure of $88.3m (SAR331.1m).
The publicly traded company said this decrease was “mainly due” to lower property sales.
Its total revenue figure for the first three months of this year did not fare much better. The group brought in $219.6m (SAR823.7m) in cash during the period, a 71% decrease on Q1 2018’s $746.5m (SAR2.8bn) revenue figure.
Dar Al Arkan is currently working on Dubai’s I Love Florence Tower, the interiors for which have been designed by Italian fashion house Roberto Cavalli.
The developer is also building cinemas in Saudi Arabia under a partnership with the UAE's Majid Al Futtaim. Its 15-screen Vox multiplex in Riyadh's Al Qasr Mall opened in Q1 2019.
March this year saw the group report an 8% decline in net profit after zakat and tax for 2018.
However, while profits declined at Dar Al Arkan, its 2018 revenue increased by more than a third during the same period. The company generated $1.7bn (SAR6.4bn) in sales last year, marking 35% growth over 2017's corresponding figures of $1.2bn (SAR4.7bn).