Electrical Industries Company profits soar 189% during Q1 to SAR 35 million

Electrical Industries Company revealed an increase in net profit after zakat and tax in the first quarter to SAR 35.1 million, compared to SAR 12.2 million in the same quarter of last year, by 189%. This came after the announcement on Wednesday of the interim financial results for the period ended on 31.03.2023 (Three months).

The operational profit amounted to SAR 47 million in the first quarter, compared to SAR 17.7 million in the same quarter of the previous year, a growth of 164.7%.

The total shareholders’ equity “without minority rights” amounted to SAR 666.8 million in the current period, compared to SAR 600 million in the same period last year, an increase of 11%.

Profit per share in the current period reached SAR 0.79, compared to SAR 0.27 in the same period last year.

The increase in net profit for the current quarter compared to the similar quarter of the previous year is mainly attributed to the following:

– Increase in sales from SAR 229,1 million to SAR 380,2 million

– The diversification of sold products which include products with higher profitability, in addition to improvement in gross margin for certain products.

The increase in net profit is offset by increase in selling and distribution expenses due to increase of sales, increase in General and Administrative expenses, and increase in finance cost

The decrease in net profit for the current quarter compared to the previous quarter is mainly attributed to decrease in gross margin due to increase in cost of sales, despite of increase in sales

Additional Information:

During 2022, the Company transferred to New ERP -Oracle Cloud. The inventory policy has been changed from Weighted Average to FIFO. As per IFRS, which resulted in an increase in the cost of sales in this quarter with an amount of one million SAR.