Executive Summary
Ladun Investment Company reported QQ2 2024 revenue of SAR 323.38 million, representing a significant year-over-year decline of 50.4% and flat sequential performance (QoQ 0%). Net income was SAR 16.21 million with an EPS of SAR 0.0324, but the quarter exhibited meaningful profitability headwinds as gross margin remained modest at 21.3% and operating margin at 8.44%. The company generated EBITDA of SAR 37.65 million, yet operating cash flow was negative at SAR -10.86 million and free cash flow registered at SAR -16.03 million, underscoring a pronounced working capital outflow dynamics.
Key Performance Indicators
Key Insights
Revenue: SAR 323.38m (YoY -50.41%, QoQ 0.00%)
Gross Profit: SAR 68.89m (YoY -53.15%, Margin 21.30%)
Operating Income: SAR 27.30m (Margin 8.44%, YoY -65.77%)
Net Income: SAR 16.21m (Net Margin 5.01%, YoY -77.83%)
EPS: SAR 0.0324 (YoY -78.40%)
EBITDA: SAR 37.65m (EBITDA Margin 11.64%)
Liquidity: Current ratio 0.92, Quick 0.78, Cash ratio 0.08
Debt and Leverage: Total debt SAR 1,379.65m, Net debt SAR 1,280.35m, Debt to capitalization 0.69, Debt to equity 2.27, Interest coverage 0 (negative due to e...
Financial Highlights
Revenue: SAR 323.38m (YoY -50.41%, QoQ 0.00%)
Gross Profit: SAR 68.89m (YoY -53.15%, Margin 21.30%)
Operating Income: SAR 27.30m (Margin 8.44%, YoY -65.77%)
Net Income: SAR 16.21m (Net Margin 5.01%, YoY -77.83%)
EPS: SAR 0.0324 (YoY -78.40%)
EBITDA: SAR 37.65m (EBITDA Margin 11.64%)
Liquidity: Current ratio 0.92, Quick 0.78, Cash ratio 0.08
Debt and Leverage: Total debt SAR 1,379.65m, Net debt SAR 1,280.35m, Debt to capitalization 0.69, Debt to equity 2.27, Interest coverage 0 (negative due to earnings mix)
Cash Flow: Operating cash flow SAR -10.86m, Free cash flow SAR -16.03m, Net cash from/used in financing SAR -58.77m, Forex impact positive SAR 164.03m, Net change in cash SAR 68.54m
Valuation and Efficiency: P/B 4.24, P/S 7.96, P/E 39.70, EV/EBITDA 102.40, ROE 2.67%, ROA 0.57%, Asset Turnover 0.11
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
323.38M |
-50.41% |
0.00% |
| Gross Profit |
68.89M |
-53.15% |
0.00% |
| Operating Income |
27.30M |
-65.77% |
0.00% |
| Net Income |
16.21M |
-77.83% |
0.00% |
| EPS |
0.03 |
-78.40% |
0.00% |
Key Financial Ratios
operatingProfitMargin
8.44%
operatingCashFlowPerShare
$-0.02
freeCashFlowPerShare
$-0.03
dividendPayoutRatio
30.8%
Management Commentary
Transcript not provided in the data package. No management commentary or earnings-call quotes were supplied for QQ2 2024. As a result, a thematic synthesis of strategy, operations, or market conditions from the call could not be produced.
Forward Guidance
No explicit forward guidance was disclosed in the QQ2 2024 results. Given the material YoY revenue decline, leverage, and liquidity constraints, investors should monitor: (1) any management communications on deleveraging plans or asset monetization, (2) changes in working capital dynamics (DSO, DIO, DPO), (3) capex discipline and potential asset redevelopment or sale opportunities, and (4) debt maturities and covenant relief risk. Our assessment suggests a cautious trajectory in the near term with potential uplift if liquidity improves and debt burdens are reduced, aided by Saudi real estate sector tailwinds and project monetization timelines.