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Red Sea International Co. announces its Interim Financial results for the Period Ending on 2026-03-31 ( Three Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 631,223 | 700,663 | -9.91 | 909,102 | -30.566 |
| Gross Profit (Loss) | 76,223 | 92,491 | -17.588 | 25,509 | 198.808 |
| Operational Profit (Loss) | 14,455 | 19,115 | -24.378 | -42,577 | - |
| Net Profit (Loss) Attributable to Shareholders of the Issuer | 2,543 | -11,227 | - | -40,865 | - |
| Total Comprehensive Income Attributable to Shareholders of the Issuer | 5,027 | -11,227 | - | -51,611 | - |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Shareholders Equity (after Deducting Minority Equity) | 435,038 | -3,956 | - |
| Profit (Loss) per Share | 0.05 | -0.37 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | -35,857 | -7.4 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | The main reason for decrease in revenue as compared to Q1 2025 is the relatively lower pace in execution of projects during the quarter. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | The main reasons for decrease in net loss as compared to Q1 2025 despite reduction in gross profit due to reduced revenue as explained above, are reduction in S G & A costs due to cost cutting measures applied across the group, reduction in provisions for expected credit losses due to better collections of aged receivables, reduction in finance costs and zakat charge. Further, the net losses reduced due to lesser losses from discontinued operations. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | The main reason for decrease in revenue as compared to Q4 2025 is the relatively lower pace in execution of projects during the quarter. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | The main reason for decrease in net losses as compared to Q4 2025 was the booking of impairment on Property plant and equipment, Investment property and inventories amounting to around SR 76 million during Q4 2025 based on management's assesment of their recoverable values and future revenue generation capability. There were no such impairments recorded during the current quarter. |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | Not applicable |
| Reclassification of Comparison Items | Certain of the prior period amounts were reclassified and restated to conform with the presentation in the current period. For details please refer note 19 to the Condensed Consolidated Interim Financial Statements for the period ended 31 March 2026. |
| Additional Information | • The Group generated revenues amounting to SR 631 million in Q1 FY26, compared to SR 700 million in Q1 FY25, which represents an decrease of around 10%. The breakdown is as follows: - Revenue from general construction decreased by 16 %, from SR 600 million in Q1 FY 25 to SR 501 million in Q1 FY 26. - Revenue from sale of buildings witnessed a decrease of 10%, from SR 60 million in Q1 FY25 to reach SR 54 million in Q1 FY 26. - Revenue from rental of investment properties and facilities management, witnessed a significant increase of 86%, from SR 41 million in Q1 FY 25 to SR 76 million in Q1 FY26. • Gross profit amounted to SR 76 million in Q1 FY26, compared to a gross profit of SR 92 million in Q1 FY25, owing to lower revenue recognised during the current quarter. This translates to a Gross margin of 12% in Q1 FY26 as compared to 13 % in Q1 FY25. • Operating profit amounted to SR 14 million in Q1 FY26, compared to an operating profit of SR 19 million in Q1 FY25. The decrease in operating profit despite reduction in the S & GA expenses and allowance for expected credit losses by around 16%, was due to the reduction in gross margins as explained above. The Company would like to draw shareholder's attention to the following: • Selling and distribution expenses include amortisation of intangible assets recognised on acquisition of a subsidiary as part of a Purchase price allocation "PPA" exercise performed in accordance with requirements of IFRS 3. The quarterly PPA related amortisation of SR 24.4 million are purely non-cash charges. The operating profit before the impact of such non-cash PPA related amortisation amounts to SR 38 million in Q1 FY 26 compared to SR 43 million in Q1 FY 25. • Similarly the consolidated net profit before the non-cash PPA related amortisation amounts SR 22.3 million in Q1 FY 26 compared to a net profit of SR 19.8 million in Q1 FY 25. These PPA related amortisation charges are expected to remain consistent over the next quarters of FY 26, before declining significantly thereafter from Q1 FY 27 as one of the major underlying intangible assets will reach the end of its useful life. For more details regarding the PPA exercise please refer to note 17 of the condensed consolidated interim financial statements for the three-month period ended 31 March 2026. • Earnings /(Loss) per share is calculated by dividing loss attributable to equity holders of the Parent Company by number of shares of the Company. |
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.
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