Lumi’s H1 2023 profit jumps 39% to SAR 100 mln; Q2 at SAR 49.6 mln

Lumi Rental Co., a wholly-owned subsidiary of Seera Group Holding that plans to list on the Saudi Exchange (Tadawul), reported a 39% leap in the first-half net profit to SAR 100 million, compared to SAR 72 million in H1 2022.

The H1 2023 profit rise was spurred by a 49% hike in revenue to SAR 500 million from SAR 336.6 million in H1 2022, as the revenue growth from car sales and long-term rentals jumped by over 100% and 21% year-on-year (YoY), respectively. Short-term rentals revenue also increased 43% YoY.

Lumi recorded other income of SAR 10.4 million in H1 2023, compared to SAR 258,300 in the prior-year period.

The gross profit margin (GPM) expanded from 34% in H1 2022 to 35% in the current period.

Operating profit margins rose to 26% in the first half of this year, from 24% in H1 2022 despite higher general and administrative expenses (G&A).

However, provision for impairment of receivables surged to SAR 10.9 million in H1 2023, against SAR 7.3 million in the corresponding period a year ago.

Finance costs (FCs) also increased to SAR 27.2 million in H1 2023 from SAR 8 million in the first half of 2022.

The second-quarter net profit climbed 44% to SAR 49.65 million from SAR 34.51 million in Q2 2022.

The Q2 2023 profit growth was driven by a 36% leap in revenue to SAR 233 million from SAR 170.7 million in Q2 2022.

Lumi recorded other income of SAR 10.4 million in Q2 2023, compared to SAR 219,000 in the year-earlier period.

The GPM inched up from 32% in Q2 2022 to 33% in the current period. Operating profit margins rose to 28% in the second quarter of this year from 23% in Q2 2022, despite higher G&A and provision for impairment of receivables, besides a more-than-triple YoY hike in FCs.

Total shareholders’ equity, no minority interest, rose to SAR 943.56 million as of June 30, 2023, from SAR 771 million a year earlier.