Revenues down 14% at Saudi prefab housing firm Red Sea Int'l in Q1 '19
Year-on-year losses widen at Tadawul-listed Saudi Arabian company due to gross profit decline, rental revenue drop
Losses widened in Q1 2019 at Saudi Arabia's Tadawul-listed prefabricated housing firm Red Sea International Company – which owns Red Sea Housing Services-branded subsidiaries in Ghana, Nigeria, Libya, Algeria, Dubai, Papua New Guinea, Oman, and Australia, among other countries – as rental revenues declined by 13.9% compared to Q1 2018.
According to its Q1 2019 financial statement, the firm reported a net loss of $4.1m (SAR15.4m) after zakat and tax, a 16% increase on its $4.8m (SAR18m) net loss figure during Q1 2018.
The group cited a $1.8m (SAR6.7m) decrease in gross profit during the period as the primary cause behind its year-on-year losses.
A 13.9% fall in rental revenues in the first three months of the year also squeezed gross profit margins from 7.1% in Q1 2018 to 5.5% in Q1 2019.
Net revenues during the same period hit $34m (SAR127.5m), a 14% decline on the $39.4m (SAR147.7m) in cash that the group brought in during Q1 2018.
In its Tadawul filing, the group said it had implemented “cost control measures” to improve its financials. These measures include a 5.1% reduction in selling and marketing expenses and a 4.2% cut in general and administrative costs compared to Q1 2018.
Red Sea International Co is headquartered in Saudi Arabia and operates in Africa, Asia, and the Middle East.
In the Middle East, the company has supplied modular buildings for Saudi Arabian Mining Company’s King Abdullah Project at Waad Al Shamaal City.
The team provided a temporary camp for 400 executives that was fitted out with fresh water, electricity, water treatment, and television access.