Saudi Arabia’s JODC posts first-half revenue quadrupled to $104.2 million

Saudi Arabia – Jabal Omar Development Company (JODC), one of Saudi Arabia’s largest property developers, said its revenue in the first half (H1) nearly quadrupled to SR391.3 million (104 .2 million).

Growth was driven by the strong performance of the hotel portfolio and improved occupancy and footfall in commercial properties thanks to the remarkable recovery of Umrah activities.

The lead developer of the iconic mixed-use mega-project in Makkah added that hospitality revenue was up 287% year-on-year (YoY) due to increased occupancy and the ADR (average daily rate)

Retail portfolio revenue increased 326% over H1 2021 driven by revenue maximization initiatives and increased footfall

Gross profit soared 152.9 percent year-on-year to SR71.5 million from a gross loss of SR135.2 million in the same period a year ago. This is attributed to higher revenues, cost containment measures and efficiencies driven by the company’s overall transformation strategy.

Operating loss was SR31.1 million in H1 2022, a significant reduction of 91.5% from SR365 million in H1 2021, attributable to improved performance of the company thanks to the various initiatives it launched in 2021.

Khaled Al Amoudi, CEO of Jabal Omar Development Company, said: “The above-expected level of activity in the Hajj and Umrah sector since the start of 2022 has supported our strong performance. Occupancy levels at our hotels were almost back to pre-pandemic levels, and footfall at our malls also saw strong recovery momentum. We expect these levels to continue for the remainder of the year as there remains strong pent-up demand for pilgrims, both domestic and international, to visit Makkah and the holy sites.

“The continued implementation of our company-wide transformation plan continues to reflect positively on our financial performance. Our gross and operating profits are improving significantly, thanks to cost containment measures and improved operational efficiency. In addition, we continue to see the tangible and positive impact of our ongoing capital structure optimization plan. Our balance sheet is getting stronger and our financial position more sustainable compared to the past two years.

“Going forward, we plan to bring in new revenue streams from our recently opened malls and soon-to-be-opened hotels. and 4. Additionally, we will continue to optimize our operating assets, further deleverage our balance sheet and optimize our capital structure. us; if approved by our shareholders, the Company will be fully on track to meet its near-term goals for the short-term and medium-term goals.”

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