Red Sea International (RSI), a market-leading integrated building solutions provider in the Middle East and worldwide, reported a 241 per cent year-on-year (YoY) increase in revenue to SR1.378 billion ($367.42 million) for the year ending on December 31, 2023 (FY23).

The revenue increase was supported by a number of factors, including the strategic acquisition in October 2023 of a 51% stake in Fundamental Installation for Electric Work Company (First Fix), with the recognition in RSI’s consolidated financial statements starting in 4Q2023.

EBITDA witnessed a marked improvement to SR 99 million in FY23, compared to an EBITDA loss of SR 118 million in FY22, supported by the robust top-line performance during the period.

Profit from continuing operations improved significantly to reach SR16 million, compared to a loss of SR190 million in the prior year, predominantly due to the impact of the First Fix acquisition.

Net profit also turned positive at SR2 million, compared to a net loss of SR198 million in FY22, including the proposed sale of Premier Paints Company, which is classified as a discontinued operation.

Furthermore, RSI’s increasing focus on streamlining all stages of the supply chain, combined with competitive pricing strategies and advanced procurement techniques, have also resulted in the improvement in revenues, the company said.

First Fix is a leading contractor in the GCC, providing end-to-end infrastructure services that include MEP solutions across a wide range of customers. The acquisition has enabled RSI to gain a critical stream of electromechanical and civil construction capabilities that add to its position as an established brand in residential, industrial, and commercial modular construction.

During the year, the Board of Directors carried out a comprehensive assessment of the company’s business model, resulting in key decisions to transform RSI’s operations and organizational structure, and the onboarding of a new leadership team. A focused 90-day action plan was put in place, to increase the Company’s focus on project execution, delivery, efficiency, integration, and overall performance.

Marwan Sayegh, Chief Executive Officer of Red Sea International, commented: “2023 was a pivotal year for Red Sea International, during which we focused on a transformative repositioning exercise, that saw the initial phases of implementing our new business model, which included the strategic acquisition of a majority stake in ‘First Fix’ and the disposal of the ‘Premier Paints Company’.

"These critical steps have consolidated our business and expanded our integrated suite of innovative solutions to our growing customer base. We are excited about the renewed foundation we are creating for the Company, and look forward to unlock further growth avenues, through stronger market positioning and enhanced competencies.”

Ghassan Ashkar, Chief Financial Officer of Red Sea International, said: “Red Sea International reported a positive set of financial results for 2023, as we witnessed a return to profitability, driven by decisive measures undertaken to charter the path ahead for a new phase in our strategic growth, leading us to regain market leadership.

"From this base, we will continue to recalibrate our business priorities and strengthen our financial position, to generate sustainable long-term value for our shareholders.” 

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