Elm profits reach SR273 mln during Q3, increase of 53%‎

Elm Co. announced that net profit after zakat and tax grew to 273 million riyals during the third quarter, compared to 178 million riyals in the same quarter of last year, at a rate of 53%. This came after today’s announcement of the preliminary financial results for the period ending on September 30, 2022 (9 months).

The operational profit amounted to 273 million riyals in the third quarter, compared to 196 million riyals in the same quarter of the previous year, a growth of 39%.

As for gross profit, it amounted to 451 million riyals in the third quarter, compared to 327 million riyals in the same quarter of the previous year, an increase of 38%.

The net profit after zakat and tax in the 9-month period amounted to 718 million riyals, compared to 457 million riyals in the same period last year, an increase of 57%.

Earnings per share in the current period reached 9.2 riyals, compared to 5.71 riyals in the same period last year.

The company achieved a net profit after zakat of 273 million riyals for the third quarter of 2022 AD, an increase of 53.37% (96 million riyals) compared to the same quarter of the previous year. This rise is due to:

Revenues increased by 20.682% (201 million riyals), which contributed to an increase in total profit by 37.92% (123 million riyals). The reason for the improvement in revenues is the increase in the revenues of the digital business segment by 67.10%, and the increase in the revenues of the professional services segment by 29.90%, despite the decrease in the revenues of the business support segment by 26.83%.

On the other hand, operating expenses increased by 35.66% (46.7 million riyals), as a result of an increase in expected credit losses expense by 21.6 million riyals, an increase in general and administrative expenses by 16 million riyals, and an increase in selling and marketing expenses by 8.8 million riyals.

In addition, the returns on Murabaha deposits increased by 7.8 million riyals, and other incomes increased by 13.3 million riyals.

While the company achieved a net profit after zakat of 273 million riyals for the third quarter of 2022 AD, an increase of 40% (78 million riyals) compared to the previous quarter of this year. This rise is due to:

Revenues increased by 12.319% (128 million riyals), which contributed to an increase in gross profit by 17.754% (68 million riyals). The reason for the improvement in revenues is the increase in the revenues of the digital business segment by 11.92%, and the increase in the revenues of the business support segment by 19.10%, despite the decrease in the revenues of the professional services segment by 26.23%.

On the other hand, operating expenses increased by 22.97% (33.2 million riyals), as a result of an increase in the expected credit loss expense by 19.2 million, an increase in general and administrative expenses by 6.8 million riyals, and an increase in selling and marketing expenses by 4.3 million riyals.

In addition, the proceeds of Murabaha deposits increased by 5.9 million riyals and other incomes increased by 10.3 million riyals, on the other hand, the depreciation expense of intangible assets decreased by 26.0 million riyals.

The company also achieved a net profit after zakat of 718 million riyals for the nine months of 2022 AD, an increase of 57.111% (261 million riyals) compared to the same period of the previous year. This rise is due to:

Revenues increased by 19.579% (540 million riyals), which contributed to an increase in total profit by 36.523% (332 million riyals). The reason for the improvement in revenues is the increase in the revenues of the digital business segment by 41.14%, and the increase in the revenues of the professional services segment by 65.65%, partially offset by the decrease in the revenues of the business support segment by 11.92%.

On the other hand, operating expenses increased by 12.10% (49.5 million riyals), as a result of an increase in general and administrative expenses by 36.4 million riyals, and an increase in selling and marketing expenses by 25.7 million riyals, offset by a decrease in the expected credit loss expense by 14.1 million.

In addition, a decrease in the value of intangible assets was recorded by 28.1 million riyals, in addition to an increase in zakat expense by 9.3 million riyals.

The company said that some comparative figures have been reclassified to conform with the current presentation of the interim condensed consolidated financial statements which had no effect on the results of the comparison period.