Rimath Hospitality Co. Announces Its Interim Financial Results For The Period Ending On 2026-06-30 ( Six Months )
| Element List | Current Period | Similar period for previous year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 11,645,172 | 9,701,833 | 20.03 | ||
| Net Profit (Loss) Attributable to Shareholders of the Issuer | -7,331,623 | 1,934,922 | - | ||
| Total Shareholders Equity (after Deducting Minority Equity) | 43,127,224 | 50,361,439 | -14.364 | ||
| Profit (Loss) per Share | -3.76 | 0.99 | |||
| All figures are in (Actual) Saudi Arabia, Riyals | |||||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | - | - | |
| All figures are in (Actual) Saudi Arabia, Riyals | |||
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is: The Company’s revenue increased to SAR 11.65 million in H1 2026, compared with SAR 9.70 million in the corresponding period of 2025, representing an increase of SAR 1.94 million, or 20.03%.
This growth was primarily driven by the continued execution of the Company’s strategy to diversify and expand its product portfolio, develop its sales channels, and reach new market segments.
During Q4 2025 and H1 2026, the Company launched a number of initiatives, including the introduction of new products and the expansion of its customer reach and target markets, which contributed to strong revenue growth during H1 2026 compared with the corresponding period of the previous year.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is: The Company reported a net loss of SAR 7.33 million in H1 2026, compared with a net profit of SAR 1.93 million in the corresponding period of 2025.
The change in net results was primarily attributable to the recognition of a number of provisions and non-cash accounting items during the period, most notably an Expected Credit Loss (ECL) provision of SAR 5.5 million and an impairment loss on intangible assets of SAR 3.0 million.
Net results were also impacted by higher amortization expense on intangible assets following the revision of the estimated useful lives of these assets undertaken by the Company during 2025, as part of a more prudent accounting approach.
Despite the impact of these accounting items on the reported net results, the Company continued to deliver strong underlying operating performance during H1 2026, supported by revenue growth of 20.03%.
Furthermore, the Company’s Adjusted EBITDA margin improved to 52% in H1 2026, compared with 50% in the corresponding period of 2025, representing an improvement of two percentage points and reflecting the continued improvement in the Company’s underlying operating performance despite the impact of provisions and accounting items recognized during the period.
Statement of the type of external auditor's report: Unmodified conclusion
Reclassification of Comparison Items: Certain balances in the comparative figures have been reclassified to conform to the presentation adopted in the current period's interim condensed financial statements as disclosed in Note 28 of these financials.
Accordingly, an amount of SR 1.18 million was reclassified from selling and marketing expenses to revenue to better reflect the nature of the said transaction. In addition, balances totaling to SR 8.30 million were reclassified from ‘Prepayments & Other current assets’, and ‘Accounts receivable’ to ‘Amounts due from related parties.
The above-mentioned reclassifications had no impact on the net profit, total assets, total liabilities, or equity of the company for the comparative period
Additional Information: As explained in the previous section(s), despite the reported net loss, the operation of the company remained intact with a very good year-on-year top-line growth. Accordingly, the underlying profitability of the company for the current period is much higher than the reported numbers. The said underlying operational efficiency/performance is further justified by the higher underlying EBITDA margin reported in H1 2026 compared to H1 2025.
Furthermore, in addition to the number of non-cash items, the increase finance cost propelled by the first tranche of the Sukuk (that was issued in H1 2O26) also partially drove the reported bottom-line of the company in H1 2026. Nonetheless, the benefit of the repaid loans using a portion of the Sukuk proceeds is expected to contribute positively towards the bottom-line of the company in H2 2026.