Elm Profits Increase to 195 mln during Q2, by 77%

Elm revealed that the net profit after zakat and tax in Q2 increased to SR195 million, compared to SR110 million in the same quarter of last year, 77.2%

This came after Elm’s announcement on Sunday about the preliminary financial results for the period ending on 30-06-2022 (six months).

The operational profit amounted to SR239 million in the second quarter, compared to SR134 million in the same quarter of the previous year, by 78.4%.

The net profit after zakat and tax in the 6-month period amounted to SR444 million, compared to SR279 million in the same period of the last year, by 59%.

The gross shareholders’ equity “without minority rights” amounted to SR2.7 billion in the current period, compared to SR2.5 billion in the same period last year, an increase of 8%.

Profits per share in the current period reached SR5.68, compared to SR3.49 in the same period last year.

The Company achieved a net profit after Zakat of SR195 million in Q2 – 2022, with a decrease of 21.9% (SR55 million) compared to the previous quarter of the current year. This decrease is due to:

Increase in revenue by 2.1% (SR21 million), which led to an increase in gross profit by 25.3% (SR77 million). The increase in revenue resulted from an increase in Digital Business by 19.1%, and increase in Professional Services by 62.8%, this was partially offset by the decrease in Business Process Outsourcing by 27.5%.

On the other hand, there was a decrease in operating expenses by 15.7% (SR27 million), as a result of decrease in expected credit losses by SR41 million, this was partially offset by the increase in the selling and marketing expenses by SR5, and increase in the general and administration expenses by SR8 million.

Furthermore, there was an increase in the other expenses due to recording an impairment of Intangible assets by SR27 Million, and the increase in Zakat expense by SR5 Million.

The Company achieved a net profit after Zakat of SR195 million in Q2 – 2022, with a decrease of 21.9% (SR55 million) compared to the previous quarter of the current year. This decrease is due to:

Decrease in revenue by 4.9% (SR53 million), which led to a decrease in gross profit by 6% (SR24 million). The decrease in revenue resulted from decrease in Business Process Outsourcing by 25.8%, and decrease in Professional Services by 13.3%, this was partially offset by the increase in Digital Business by 8.1%.

On the other hand, there was an increase in operating expenses by 4.7% (SR7 million), as a result of increase in the selling and marketing expenses by SR1, and increase in the general and administration expenses by SR11 million, this was partially offset by the decrease in expected credit losses by SR6 million.

Furthermore, there was an increase in the other expenses due to recording an impairment of Intangible assets by SR27 million.

The Company achieved a net profit after Zakat of SR444 million for the six months period of 2022, with an increase of 59.3% (SR165 million) compared to the same period of the last year. This increase is due to:

Increase in revenue by 18.9% (SR339 million), which led to an increase in gross profit by 35.9% (SR209 million). The increase in revenue resulted from an increase in Digital Business by 29.5%, and increase in Professional Services by 82.9%, this was partially offset by the decrease in Business Process Outsourcing by 1.8%.

On the other hand, there was an increase in operating expenses by 1% (SR3 million), as a result of increase in the selling and marketing expenses by SR17, and increase in the general and administration expenses by SR20 million, this was partially offset by the decrease in expected credit losses by SR36 million.

Furthermore, there was an increase in the other expenses due to recording an impairment of Intangible assets by SR27 Million, and the increase in Zakat expense by SR9 Million.

Additional Information:

– EBITDA for the six months period ended June 30, 2022 amounted to SR563 million compared to SR356 million for the same quarter of the last year, with an increase of 58.1%.

– For profits per share calculation purposes, the number of shares for the three and six months periods ended June 30, 2021 has been adjusted retrospectively due to the capital increase.

The interim condensed financial statements of the Group have been reviewed for the three and six months periods ended June 30, 2021 by another auditor who has issued an unmodified opinion on these interim condensed consolidated financial statements on September 14, 2021.