Astra Industrial Reports 21.8% Increase in First Quarter Profits to SAR 149.7 Million

Astra Industrial Group has reported a net profit increase to SAR 149.7 million for the first quarter of 2024, up 21.8% from SAR 122.8 million in the same quarter of the previous year. These results come from the preliminary financial statements for the period ending March 31, 2024.

The company saw its operating profit rise to SAR 168.4 million in the first quarter, marking a 21.3% increase from SAR 138.7 million in the prior year. Earnings per share also grew from SAR 1.54 to SAR 1.87.

A significant contributor to this growth was an increase in sales across key sectors:

• Steel Industries
• Pharmaceuticals

Both sectors not only reported higher sales but also an increase in gross profit, driving the overall net profit growth. Furthermore, there was a noticeable increase in other income, net, enhancing the profitability.

Shareholders’ equity, excluding minority rights, reached SAR 2.28 billion, up 15.2% from SAR 1.97 billion at the end of the same period last year. Notably, this financial metric was previously reported with a 12% increase from the prior year, reflecting updated calculations.

In addition, on February 21, 2024, Astra Industrial Group and Tharwat Mining Company entered into an agreement with Saudi Lime Industries Company to divest their entire stake in Astra Mining. The transaction, valued at SAR 35 million, also includes the settlement of the company’s total commercial debt of SAR 129.6 million. The completion of this deal is expected before the end of the second quarter, pending the fulfillment of terms outlined in the Sale and Purchase Agreement (SPA).

The results also account for increased expenses related to zakat and income taxes across all sectors, indicating a robust financial management strategy despite rising fiscal obligations.