Edarat profits grow by 37.8% in 2023 to SAR 17.3 mln

Edarat Communication and Information Technology Company revealed Tuesday 2024 an increase in net profit during the year ending on December 31, 2023, to SAR 17.3 mln, compared to SAR 12.6 SAR last year, by 37.8%. This came after today’s announcement of its annual financial results ending on December 31, 2023.

The operating profit reached SAR 19.7 mln for the year ending December 31, 2023, compared to SAR 14.4 mln in the previous year, a growth of 37%.

The total shareholders’ equity “after excluding non-controlling interests” amounted to SAR 39 mln in the current year, compared to SAR 21.4 mln last year, an increase of 81.8%.

The earnings per share in the current year reached SAR 13.79, compared to SAR 10 last year.

– Revenue Growth: The company reported a total revenue of SAR 80.2 mln, an increase of 36% YoY. A prime contributor to this growth is Edarat Cloud, which witnessed an increase in its revenue by 152% YoY, and a growth of 312% for H2 2023 compared to H2 2022.

– Gross Profit: The company reported SAR 34.6 mln in gross profit, an increase of 45% YoY. It is worth to highlight that the company’s 2023 cost of sales represented 57% compared to 60% for YE 2022.

Earnings before interest and taxes (EBIT): The company reported a 37% increase from SAR 14.4 mln in 2022 to SAR 19.8 mln in 2023.

Net Profit: The company reported a net profit of SAR 17.4 million, an increase of 38% year-on-year.

Comprehensive Net Income: The Company reported SAR 17.6 mln in total comprehensive net income for YE 2023, an increase of 46% compared to YE 2022. This is primarily due to a gain on re-measurement of liability for employment benefits amounted SAR 201K.

Additional information:

It is worth noting that on October 16th 2023, the extraordinary general assembly at Edarat, has approved the cancellation of the statutory reserve clause of the company’s bylaws and transferring the statutory reserve balance amounted SAR 1.89 mln to the retained earnings.

In December 2023, Edarat announced the board of directors resolution to increase its capital by 100%, from SAR 12.6 mln to SAR 25.2 mln.