Elm profits up 48% to SR250mln in 1Q

Elm Company announced that its profits after zakat and tax soared 48% to SR 250 million during the first quarter of the year 2022 compared to SR 169 million during the same period of 2021.

This came after Elm announcement on Sunday of the preliminary financial results for the period ending on 31.03.2022 (three months).

The operational profits of the company surged 50% to SR 270 million in 1Q against SR 169 million in the same period of the year ago.

Moreover, Elm’s gross profit jumped 48% to SR 408 million in the first quarter this year from SR 275 million, while profit per share rose to SR 3.17 from SR 2.11.

The Company achieved a net profit after Zakat of SR 250 million, with an increase of 47.8% (SR 81 million) comparing to the same quarter of the last year. This increase is due to:

Increase in revenue by 41.2% (SR 318 million), which led to increase in gross profit by 48.0% (SR 132 million). The increase in revenue resulted from increase in Digital Business by 42.8%, Business Process Outsourcing by 33.4% and Professional Services by 104.8%.

This was offset with an increase in operating expenses by 29.0% (SR 31 million), as a result of the Increase in selling and marketing by SR 13 million, the increase in expected credit losses by 5 million, and the increase in general and administration expenses by SR 13 million.

The Company achieved a net profit after Zakat of SR 250 million, with an increase of 126.4% (SR 139 million) comparing to the previous period. This increase is due to:

Increase in revenue by 2.1% (SR 23 million), which led to increase in gross profit by 42.2% (SR 121 million). The increase in revenue resulted from increase (decrease) in Digital Business by 15.2%, Business Process Outsourcing by (19.5%) and Professional Services by 166.9%.

Also, the operating expenses decreased by 19.5% (SR 33 million), as a result of the decrease in selling and marketing by SR 7 million, the decrease in expected credit losses by 14 million, the decrease in general and administration expenses by SR 7 million, and the decrease in depreciation and amortization expenses by SR 5 million.

EBITDA for the three months ended March 31, 2022 amounted to SR 297 million compared to SR 195 million for the same quarter of the last year, with an increase of 52.2%.