‎“Elm” profits rose to SR322 mln during Q1, by 29%‎

The net profit after zakat and tax for Elm Company grew to 322 million riyals during the first quarter, compared to 250 million riyals in the same quarter of last year, by 29%. This came after the announcement today of the preliminary financial results for the period ending on 03-31-2023 ( three months).

The operational profit amounted to 320 million riyals in the first quarter, compared to 270 million riyals in the same quarter of the previous year, an increase of 19%.

As for gross profit, it amounted to 533 million riyals in the current period, compared to 440 million riyals in the same period last year, an increase of 21%.

Earnings per share in the current period amounted to 4.15 riyals, compared to 3.17 riyals in the same period last year.

The company achieved a net profit after zakat of 322 million riyals for the first quarter of the year 2023 AD, an increase of 29.15% (73 million riyals) compared to the same quarter of the previous year. This is as a result of the following:

Revenues increased by 17.96% (196 million riyals), which contributed to an increase in total profit by 21.31% (94 million riyals). This increase in revenues resulted from the increase in the digital business sector by 47.44%. In addition, the revenues of the business outsourcing sector decreased by 28.35%, and the revenues of the professional services sector decreased by 12.22%.

On the other hand, operating expenses increased by 25.42% (43 million riyals), as a result of an increase in general and administrative expenses by 21 million riyals, an increase in selling and marketing expenses by 12 million riyals, and depreciation and amortization expenses by 7 million riyals.

In addition, other revenues increased by 30 million riyals, as a result of the increase in the returns of Murabaha deposits by 28 million riyals, and the increase in other items by 2 million riyals.

The reason for the increase (decrease) in the net profit during the current quarter compared to the previous quarter is due to the fact that the company achieved a net profit after zakat amounting to 322 million riyals for the first quarter of the year 2023, an increase of 51.84% (110 million riyals) compared to the previous quarter. This is as a result of the following:

Revenue decreased by 1.51% (20 million riyals), which contributed to a decrease in gross profit by 2.64% (14 million riyals). This decrease in revenue resulted from a decrease in digital business sector revenues by 0.90%, business outsourcing sector revenues by 2.63%, and professional services sector revenues by 7.69%.

On the other hand, operating expenses decreased by 35.23% (116 million riyals), as a result of the decrease in expected credit losses by 83 million riyals, general and administrative expenses by 14 million riyals, selling and marketing expenses by 9 million riyals, in addition to the decrease in The value of non-current assets amounted to 8 million riyals

In addition, other revenues increased by 23 million riyals, as a result of the increase in the returns of Murabaha deposits by 7 million riyals, and the increase in other items by 16 million riyals.

The company said that some comparative numbers have been reclassified to conform to the classification used for the three-month period ending on March 31, 2023.

Profits before deducting interest, taxes, depreciation, and amortization (EBITDA) for the three-month period ending on March 31, 2023 amounted to 355 million riyals, compared to 297 million riyals for the same period of the previous year, with an increase of 19.56%.