4Q FY22 revenue matches our estimate
Arabian Centres’ revenue in 4Q FY22 rose 16% YoY to SAR 519.2mn, coming in-line with our estimate. The top-line growth was supported by an increase in net rental revenue, as the company registered a dip in the weighted average rental discount rate. In addition, an increase in occupancy and higher media sales also lifted the revenue.
Operating profit surges 70% YoY to beat our estimate…
Gross and operating profit surged 40% and 70% YoY, respectively. As a result, operating profit beat our estimate by 14%, partly aided by a decrease in impairment losses on accounts receivables. As per our estimate, the company revered impairment loss to the tune of c. SAR 17mn during the quarter, in contrast to our assumption of it posting ~SAR 27mn in impairments of receivables.
…yet, the bottom-line misses our estimate
Despite a strong performance at the operating level, net profit fell 20% YoY to SAR 103.7mn (-21% below our estimate). As per our calculations, the company registered ~SAR 31mn as zakat charges in 4Q FY22 (our estimate: ~SAR 3.1mn), which primarily led to the net profit miss.