Lumi expects SAR 1.5B in sales in 2024; fleet reaches 33,500 vehicles: CEO

Sulaiman Al-Rasheed, CFO of Lumi Rental Co.

Lumi Rental Co. expects to continue recording strong growth rates across all business segments during the fourth quarter of 2024, with the full-year sales poised to total about SAR 1.5 billion by year-end, CFO Sulaiman Al-Rasheed told Argaam in a phone interview.

The company saw positive financial results in Q3 2024, given the profit growth with the topline also surging significantly to SAR 1.1 billion. Further, the size of its fleet reached 33,490 vehicles by the end of the quarter, he stated.

The lease segment contributed SAR 145 million, or 36%, to Lumi’s Q3 2024 topline. Meanwhile, the rental segment contributed SAR 114 million (28%) for the same period, Al-Rasheed added.

He stated that revenues from the sale of used vehicles reached SAR 139 million, out of the company’s total revenues of SAR 403 million for Q3 2024.

Lumi seeks to achieve stronger revenue and profit growth over the coming periods. It shall leverage the current favorable market conditions and the available opportunities to enhance its market share and expand its customer base, both in the corporate, retail or government segments, said the CFO.

Commenting on the size of the company's market share in Q3 2024, Al-Rasheed indicated that accurate and updated market studies are currently unavailable. “However, based on Lumi’s internal estimates, our market share ranges between 8-10%,” he added.

The CFO also pointed out that Lumi has undertaken some expansion plans, which aim to boost its foothold in various Kingdom-wide regions by strengthening its branch network to serve the retail market in the rental segment, in addition to expanding the customer base in the lease segment for government agencies and the corporate segment.

According to data available to Argaam, Lumi’s net profit fell to SAR 130.8 million by the end of the first nine months of 2024, compared to SAR 135 million during the same period in 2023. Net profit for Q3 2024 amounted to SAR 40.1 million.