‎“Elm” profits jumped 91% during Q2, to SR373 million ‎

Profits of Elm Company, after zakat and tax, jumped in the second quarter to 373 million riyals, compared to 195 million riyals in the same quarter of last year, an increase of 91.2%. This came after today’s announcement of the preliminary financial results for the period ending on 06-30-2023 (6 ).

Operational profit amounted to 377 million riyals in the second quarter, compared to 212 million riyals in the same quarter of last year, an increase of 78%.

The net profit after zakat and tax during the 6-month period amounted to 695 million riyals, compared to 444 million riyals in the same period last year, an increase of 56.5%.

And the total shareholders’ equity “without minority rights” amounted to 3.5 billion riyals in the current period, compared to 2.7 billion riyals in the same period last year, an increase of 29.4%.

Earnings per share in the current period reached 8.9 riyals, compared to 5.6 riyals in the same period last year.

The company achieved a net profit after zakat of 373 million riyals for the second quarter of the year 2023 AD, an increase of 91.28% (178 million riyals) compared to the same quarter of the previous year. This is as a result of the following:

Revenues increased by 35.13% (365 million riyals), which contributed to an increase in total profit by 45.76% (189 million riyals). This increase in revenue resulted from the increase in the revenues of the digital business sector by 43.04%, and the increase in the revenues of the business outsourcing sector by 22.65%. This was offset by a decrease in the professional services sector revenues by 14.63%

On the other hand, operating expenses increased by 11.94% (24 million riyals), as a result of an increase in general and administrative expenses by 23 million riyals, an increase in expected credit losses by 13 million, and an increase in selling and marketing expenses by 11 million riyals, offset by a decrease In the expense of the decrease in intangible assets by 27 million riyals.

Murabaha deposit revenues increased by 22 million riyals, offset by an increase in zakat expense by 8 million riyals.

The company achieved a net profit after zakat of 373 million riyals for the second quarter of the year 2023 AD, an increase of 15.84% (51 million riyals) compared to the previous quarter of the current year. This is as a result of the following:

Revenues increased by 9.01% (116 million riyals), which contributed to an increase in total profit by 10.66% (58 million riyals). This increase in revenue resulted from the increase in the revenues of the digital business sector by 4.95%, and the increase in the revenues of the business outsourcing solutions sector by 27.08%, offset by a decrease in the revenues of the professional services sector by 16.67%.

On the other hand, operating expenses increased by 0.45% (one million riyals), as a result of an increase in general and administrative expenses by 7 million riyals, and an increase in the expected credit loss expense by 4 million riyals, offset by a decrease in selling and marketing expenses by 8 million and a decrease in expenses Depreciation and amortization amounted to 2 million riyals

The revenues of Murabaha deposits decreased by 5 million riyals

The company achieved a net profit after zakat of 695 million riyals for the six months of the year 2023 AD, an increase of 56.53% (251 million riyals) compared to the same period of the previous year. This is as a result of the following:

Revenues increased by 26.33% (561 million riyals), which contributed to an increase in total profit by 34.51% (294 million riyals).

This increase in revenues resulted from the increase in the revenues of the digital business sector by 45.10%, offset by the decrease in the revenues of the professional services sector by 13.48%, and the decrease in the revenues of the business outsourcing sector by 6.53%.

On the other hand, operating expenses increased by 21.08% (78 million riyals), as a result of an increase in selling and marketing expenses by 25 million riyals, an increase in general and administrative expenses by 51 million riyals, an increase in credit losses expected by an amount of 17 million riyals, and an increase in expenses Depreciation and amortization amounted to 12 million riyals, offset by a decrease in the impairment charge in the value of intangible assets by 27 million riyals.

Murabaha deposit revenues increased by 51 million riyals, offset by an increase in zakat expense by 16 million riyals.

Some comparative figures have been reclassified to conform to the classification used for the current period

Profits before interest, taxes, depreciation, and amortization for the six-month period ending on June 30, 2023 amounted to 764 million riyals, compared to 536 million riyals for the same period of the previous year, with an increase of 42.53%.