Elm profits increase to SAR 334 million during Q3 by 22%

Elm Company’s net profit after zakat and tax increased to SAR 334 million during the third quarter, compared to SAR 273 million in the same quarter of last year, by 22%. This came after the announcement on Sunday of the interim financial results for the period ending September 30, 2023 (9 months).
Operational profit reached SAR 323 million in the third quarter, compared to SAR 272 million in the same quarter of the previous year, a growth of 19%.
Net profit after zakat and tax in the 9-month period amounted to SAR 1.03 billion, compared to SAR 718 million in the same period last year, an increase of 43%.
Earnings per share in the current period amounted to SAR 13.25, compared to AR 9.2 in the same period last year.
The Company achieved a net profit after Zakat of SAR 334 million in Q3-2023, with an increase of 22.34% (SAR 61 million) compared to the similar quarter for the last year, as a result of the following:
Increase in revenue by 30.33% (SAR 354 million), which led to an increase in gross profit by 18.31% (SAR 89 million). The increase in revenue resulted from an increase in Digital Business revenue by 38.24%, increase in Business Process Outsourcing revenue by 11.40%, and increase in Professional Services revenue by 36.67%.
Furthermore, income from Murabaha deposit increased by SAR 24 million.
On the other hand, operating expenses increased by 17.76% (SAR 38 million), as a result of increase in the general and administrative expenses by SAR 27 million, increase in the selling and marketing expenses by SAR 6 million, increase in depreciation and amortization expenses by SAR 6 million, offset by decrease in expected credit losses expenses by SAR 1 million. In addition, Zakat expense increased by SAR 8 million.
The Company achieved a net profit after Zakat of SR 334 million in Q3-2023, with a decrease of 10.46% (SAR 39 million) compared to the previous quarter for the current year, as a result of the following:
Increase in revenue by 8.33% (SAR 117 million), which led to a decrease in gross profit by 4.49% (SAR 27 million). The increase in revenue resulted from an increase in Digital Business revenue by 8.06%, increase in Business Process Outsourcing revenue by 8.24%, and increase in Professional Services revenue by 17.14%.
Furthermore, income from Murabaha deposit increased by SAR 7 million.
On the other hand, operating expenses increased by 12% (SAR 28 million), as a result of increase in general and administrative expenses by SAR 10 million, increase in selling and marketing expenses by SAR 7 million, increase in depreciation and amortization expenses by SAR 6 million, and increase in expected credit losses expenses by SAR 5 million.
The Company achieved a net profit after Zakat of SAR 1,029 million for the nine months of the year 2023, an increase of 43.31% (311 million) compared to the similar period for the previous year, as a result of the following:
Increase in revenue by 27.74% (SAR 915 million), which led to an increase in gross profit by 28.70% (SAR 384 million). The increase in revenue resulted from an increase in Digital Business revenue by 42.70%, this was offset by a decrease in Business Process Outsourcing revenue by 0.59% and decrease in Professional Services revenue by 2.56%.
Furthermore, income from Murabaha deposits increased by SAR 74 million.
On the other hand, operating expenses increased by 20% (SAR 116 million), as a result of increase in general and administrative expenses by SAR 78 million, selling and marketing expenses by SAR 31 million, increase in depreciation and amortization expenses by SAR 20 million, increase in expected credit losses expenses by SAR 15 million, offset by decrease in impairment of intangible assets expenses by SAR 28 million. In addition, Zakat expense increased by SAR 24 million.
Certain comparative figures have been reclassified to conform to the current period presentation of the interim condensed consolidated financial statements.
EBITDA for the nine months period ended Sep 30, 2023, amounted to SAR 1,125 million compared to SAR 838 million for the similar period for the previous year, with an increase of 34.25%.