BAAN Holding Group Co. announces its Interim Financial results for the Period Ending on 2026-06-30 ( Six Months )

BAAN Holding reported a net profit of SAR 53.32 million for the six-month period ending June 30, 2026, representing a significant turnaround from a net loss of SAR 16.65 million in the prior-year period. While quarterly net profit rose to SAR 4.23 million from SAR 0.13 million year-on-year, it fell 91.38% sequentially due to the absence of a SAR 69.53 million one-time investment sale gain recorded in the previous quarter.
Revenue for the six-month period declined 9.77% year-on-year to SAR 311.43 million, primarily impacted by lower performance in the hospitality and entertainment segments due to regional geopolitical events. This decline was partially offset by growth in catering and food services, alongside improved operational efficiency and a rationalization of direct and administrative costs.
Profitability was bolstered by non-recurring items, including the SAR 69.53 million capital gain from investment sales and gains realized from the termination of lease contracts under IFRS 16. These factors helped offset a 22.07% decrease in operating profit, which fell to SAR 11.12 million as revenue pressure impacted core hospitality margins.
The company successfully extinguished

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	152.21	178.61	-14.78	159.21	-4.396
Gross Profit (Loss)	37.61	47.33	-20.536	29.08	29.332
Operational Profit (Loss)	17.53	13.84	26.661	-6.41	-
Net Profit (Loss) Attributable to Shareholders of the Issuer	4.23	0.13	3,153.846	49.09	-91.383
Total Comprehensive Income Attributable to Shareholders of the Issuer	4.7	0.89	428.089	47.81	-90.169
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	311.43	345.15	-9.769
Gross Profit (Loss)	66.69	86.12	-22.561
Operational Profit (Loss)	11.12	14.27	-22.074
Net Profit (Loss) Attributable to Shareholders of the Issuer	53.32	-16.65	-
Total Comprehensive Income Attributable to Shareholders of the Issuer	52.51	-14.22	-
Total Shareholders Equity (after Deducting Minority Equity)	874.86	192.48	354.519
Profit (Loss) per Share	0.131	-0.053
All figures are in (Millions) 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 (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	Revenue for the current quarter amounted to SAR 152.21 million, compared to SAR 178.61 million for the corresponding quarter of the previous year, representing a decrease of SAR 26.39 million, or 14.78%. The decrease was mainly attributable to lower revenue from the hospitality segment and the entertainment segment, both of which were affected by geopolitical events in the region. This was partially offset by an increase in revenue from the catering and food services activity.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The Company reported a net profit of SAR 4.23 million, compared to a net profit of SAR 0.13 million for the same quarter of the previous year, representing an increase of SAR 4.10 million. The increase was mainly attributable to the rationalization of direct costs, lower selling and marketing expenses, lower general and administrative expenses, gains arising from the termination of lease contracts for certain branches in accordance with IFRS 16, lower finance costs, and improved operational efficiency in managing expenses
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	Revenue for the current quarter amounted to SAR 152.21 million, compared to SAR 159.21 million in the previous quarter, representing a decrease of SAR 7 million, or 4.4%. The decrease was mainly attributable to lower revenue from the hospitality segment in certain hotels during the current quarter compared to the previous quarter. This was partially offset by an increase in revenue from the entertainment segment during the current quarter compared to the previous quarter, due to the period coinciding with the Eid season and the beginning of the summer vacation
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	The Company achieved a net profit of SAR 4.23 million for the current quarter compared with a net profit of SAR 49.09 million for the previous quarter, representing a decrease of SAR 44.85 million, or 91.37%. This was mainly due to net capital gains from the sale of investments during the previous quarter amounting to SAR 69.53 million.
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is	Revenue for the current period amounted to SAR 311.43 million compared with revenue of SAR 345.15 million in the previous period, representing a decrease of SAR 33.73 million, or 9.77%. This was mainly due to a decrease in hospitality segment revenue, which was affected by certain geopolitical events in the region during the current period, as well as a decrease in entertainment segment revenue during the current period. Meanwhile, other revenue increased as a result of higher revenue from food service and catering activities during the current period.
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 profit of SAR 53.32 million, compared to a net loss of SAR 16.65 million for the same period of the previous year, representing an improvement of SAR 69.97 million. The improvement was mainly attributable to capital gains from the sale of investments recognized during the current period amounting to SAR 69.53 million, in addition to lower direct costs, lower selling and marketing expenses, lower general and administrative expenses, gains arising from the termination of lease contracts for certain branches in accordance with IFRS 16, lower finance costs, and improved operational efficiency in managing expenses.
Statement of the type of external auditor's report	Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion)	None
Reclassification of Comparison Items	None
Additional Information	Gross profit amounted to SAR 66.69 million, compared to SAR 86.12 million for the same period of the previous year, representing a decrease of 22.56%. Operating profit amounted to SAR 11.12 million, compared to SAR 14.27 million for the same period of the previous year, representing a decrease of 22.07%. Total comprehensive income for the period amounted to SAR 52.51 million, compared to a total comprehensive loss of SAR 14.22 million for the same period of the previous year. The Company also announces the completion of its strategic plan to extinguish accumulated losses, which was announced on Tadawul on 13 May 2026, as part of the Company’s financial restructuring plan and its efforts to enhance profitability and growth. The share premium balance was utilized to extinguish accumulated losses pursuant to the approval of the Extraordinary General Assembly held on 28 June 2026. The Company further informs its valued shareholders that, as a result, it is no longer within the scope of companies whose accumulated losses amount to 20% or more of their share capital. Accordingly, the necessary procedures will be undertaken to remove the red mark appearing next to the Company’s name on the Tadawul screen, as the reasons for its appearance no longer exist.