Saudi Advanced Industries profits jump 85% during Q2 to SAR 50.5 million

Saudi Advanced Industries Company’s net profit after zakat and tax increased to SAR 50.5 million during the second quarter, compared to SAR 27 million in the same quarter of last year, by 85%. This came after the announcement on Wednesday of the interim financial results for the period ended on June 30, 2023 (6 months).

The operating profit amounted to SAR 51 million during the second quarter, compared to SAR 27 million in the same quarter of the previous year, an increase of 86%.

The net profit after zakat and tax during the 6-month period amounted to SAR 73 million, compared to SAR 58 million in the same period last year, an increase of 25%.

Earnings per share in the current period amounted to SAR 1.21, compared to SAR 0.97 in the same period last year.

The reason for the increase in net profit during the current quarter compared to the same quarter of the previous year is due to:

• Increase unrealized gains from financial assets at fair value through profit or loss.

• Increased profit realized from financial assets at fair value through profit or loss.

• Increase dividends earned.

• Lower financing costs.

in spite of:

• Decrease in the company’s share of associate companies’ profits.

• Increase in the estimated zakat.

• Decreased other income.

• Increase general and administrative expenses

The reason for the increase in net profit during the current quarter compared to the previous quarter is due to:

• Increase unrealized gains from financial assets at fair value through profit or loss.

• Increased profit realized from financial assets at fair value through profit or loss.

• High dividends earned.

in spite of:

• Decrease in the company’s share of associate companies’ profits.

• Increase general and administrative expenses.

• Decreased other income.

The Increase in net profit for current period compared to the similar period of the previous years is due to:

• An increase in unrealized gains from financial assets at fair value through profit or loss.

• Increased profit realized from financial assets at fair value through profit or loss.

• Lower financing costs.

in spite of:

• Decrease in the company’s share of associate companies’ profits.

• Low dividends earned.

• Increase in the estimated zakat.

• Decreased other income.

• Increase general and administrative expenses.

According to what is stated in the external auditor report, these estimated financial results for the period ended June 30, 2023, are prepared by the management of the Company and have not yet been reviewed by the external auditor.

Additional Information

Total shareholder equity (no minority interest) as at the end of the current period is SAR 951.74 million compared to SAR 899.66 million as at the end of the same period of the previous year, an increase of 5.78%

The total comprehensive income for the current quarter amounted to SAR 24.02 million, compared to the total comprehensive income for the corresponding quarter of SAR 30.81 million, and compared to the previous quarter of SAR 23.4 million.

The company’s share of the profits of associate companies amounted to SAR 11.48 million during the current quarter, compared to SAR 24.94 million during the same quarter of the previous year, a decrease of 53.97%.

The company made changes in the investment positions, rebuilt the investment portfolio, and entered into a number of investment opportunities to compensate for the shortfall resulting from the decrease in the profits of associate companies. From these changes, it achieved profits estimated at SAR 40 million during the current period, compared to profits amounting to about SAR 9 million during the first quarter of 2023