Lumi’s fleet hits 33,250 vehicles in 2023: CFO

Suleiman Al-Rasheed, CFO of Lumi Rentals Co.

The size of Lumi Rentals Co.’s fleet reached 33,250 vehicles by the end of 2023, said CFO Suleiman Al-Rasheed.

Al-Rasheed told Argaam that Lumi sold 1,597 used vehicles in the fourth quarter of 2023 for SAR 97 million.

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The value of long-term rentals rose in Q4 2023 by 45.3% to SAR 115 million. Short-term rentals also increased by 18.2% to SAR 103 million, he said.

He added that the company's revenue growth in 2023 was driven by contributions from all three of its segments.

The CFO attributed the decline in Q4 2023 profit to some factors, including the SAR 5.1 million public subscription incentive for employees, which is a non-cash item that was paid by the selling shareholder Seera Group Holding and compensated for by contributing to the equity in Lumi's balance sheet as other reserve.

This is in addition to the costs associated with the separation from Seera by incurring other manpower costs and the cost of making the divisions independent in all administrative functions.

These costs are unlikely to witness a significant increase in the coming period, Al-Rasheed said, noting that Lumi has continued to invest in human capital and digital infrastructure to enhance its future growth and maintain its competitive advantages.

As for the company's contract with Saudi Aramco, Al-Rasheed said that it did not affect Q4 revenues, as Lumi is still in the delivery stage. He expects to start reaping revenues from this contract starting in Q2 2024.

Lumi reported a net profit of SAR 160.6 million for 2023, an increase of 12% compared to SAR 143.7 million a year earlier. Q4 net profit amounted to SAR 25.6 million, according to Argaam's data.