Damac Properties’ net profit fell 45 percent in the first quarter of 2018 to AED 483.9 million ($131.7 million) after an increase in the cost of sales, according to a regulatory filing with the Dubai Financial Market.
In Q1 2017, the company recorded AED 880.4 million in net profit ($239.6 million). The Q1 2018 earnings reported in the DFM filing were significantly below Bloomberg analyst estimates which forecast an average of AED 650 million ($176.9 million).
The net profit, however, was still above the AED 459 million ($124.9 million) recorded in Q4 2017.
According to the document, the cost of sales during Q1 2018 rose from AED 887.3 million ($241.5 million) in Q1 2017 to AED 1.13 billion this year ($307.6 million).
Additionally, the company reported revenues of AED 1.89 billion ($514.5 million), down from AED 1.94 billion in the same period last year ($528.1 million).
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