Riyadh — Mubasher: Riyal Investment and Development Company announced an 85.48% year-on-year (YoY) decline in net profit during the first half (H1) of 2026, as rising operational costs and depreciation outweighed modest revenue growth.
Net profit after tax and Zakat fell to SAR 794,214 in H1-26 from SAR 5.47 million during the same period in 2025, according to a bourse filing.
Total revenues reached SAR 75.33 million in H1-26, representing a 2.08% increase from SAR 73.79 million in the previous year.
Riyal Investment attributed the revenue growth to a 27% surge in used car sales following an increase in the volume of returned vehicles. However, this growth was partially offset by a 6.8% decline in leasing revenues.
The company further stated that the profit contraction was primarily driven by higher costs for spare parts, oils, and shipping due to current market conditions.
Additionally, depreciation expenses on the vehicle fleet rose following an increase in acquisition costs.
Earnings per share (EPS) dropped to SAR 0.10 in H1-26 compared to SAR 0.68 in the prior-year period.
Total shareholders’ equity, excluding non-controlling interests, stood at SAR 169.71 million as of 30 June 2026.
It is worth noting that Riyal Investment will hold its extraordinary general meeting (EGM) in September 2026 via modern technology to discuss and vote on proposed amendments to bylaws.
