Bawan Profits Increased to SR50 mln during 1Q, by 21%

The net profit after zakat and tax for Bawan Company decreased to SR50 million during the first quarter, compared to SR42 million during the same quarter of the previous year by 21%.

This came after Bawan announcement on Wednesday the consolidated preliminary financial results for the period ending on 31.03.2021 (three months).

The operational profit amounted to SR67 million during the first quarter, compared to SR50 million during the same quarter of the previous year, a growth of 34%.

The gross profit amounted to SR125 million during the first quarter, compared to SR103 million during the same quarter of the previous year, an increase of 22%.

Profits per share during the current period amounted to SR0.84, compared to SR0.69 during the same period of the previous year.

The reason for the increase in net profit during the current quarter compared to the same quarter of the previous year is mainly due to the following:

– The increase in net profits of the metal and wood industries sector, mainly affected by the increase in the average selling prices, which led to the increase in sales and profit margin.

– The increase in net profits of the electrical industries sector, as the sector achieved a net profit of SR 5.1 million during the first quarter of 2022, compared to profits of SR 2.1 million for the same quarter of the previous year, mainly due to the increase in the average selling prices, which led to the increase in sales and profit margin.

– The increase in net profits of the concrete industries sector, as the sector achieved a net profit of SR 2.2 million during the first quarter of 2022, compared to losses of SR 1.8 million for the same quarter of the previous year, mainly due to the increase in quantities sold, which positively affected the gross profit and profit margin.

– The increase in profits from the disposal and evaluation of investment in financial assets at fair value through profit or loss by an amount of SR 0.9 million.

This increase compared to the same quarter of the previous year, comes despite the following:

– The increase in operating expenses as a result of growth in operations.

– The increase in the finance cost due to the increase in short-term loans balance to finance the growth in operation in addition to the increase in borrowing cost compared to the same quarter of the previous year.

– The increase in the provision for expected credit losses on trade receivables.

– The increase in the zakat provision as a result of the increase in net profit, in addition to recording a provision related to previous years.

– The decrease in net profits of the plastic industries sector as a result of the decrease in the average selling prices, which led to a decrease in profit margin.

The main reasons for the increase in net profit during the current quarter compared to the previous quarter is due to the following:

– The increase in net profits of the metal and wood industries sector, mainly affected by the increase in the average selling prices, which led to an increase in sales and profit margin.

– The increase in net profits of the electrical industries sector, mainly due to the increase in the average selling prices and quantities sold, which led to the increase in sales and profit margin.

– The increase in net profits of the concrete industries sector, mainly affected by the decrease of cost of sales, which positively affected the gross profit and profit margin.

This increase compared to the previous quarter, comes despite the following:

– The increase in operating expenses as a result of growth in operation.

– The increase in the zakat provision as a result of the increase in net profit, in addition to recording a provision related to previous years.

– The decrease in the other income.

– The decrease in net profits of the plastic industries sector as a result of the decrease in the average selling prices, which led to a decrease in sales and profit margin.

Non-controlling interests share during the current quarter amounted to a net profit of SR 3.2 million as compared to a net profit of SR 0.8 million for the same quarter of the previous year with an increase by 314%.