Elm’s H1 2023 profit up 56% to SAR 695.2 mln; Q2 at SAR 372.8 mln

Elm Co. reported a 56% rise in H1 2023 net profit to SAR 695.2 million, compared to SAR 444.5 million in H1 2022.

The profit growth was buoyed by an increase of 26.33% year-on-year (YoY) in revenue, pushing gross profit higher by 34.51% YoY. The revenue growth stemmed from an increase in the digital business segment’s revenue by 45.10% YoY. This was offset by a decrease in the professional services segment’s revenue by 13.48%, and a drop of 6.53% YoY in the business process outsourcing revenue.

Impairment in intangible assets decreased by SAR 27 million, while income from Murabaha deposits increased by SAR 51 million YoY.

On the other hand, operating expenses (OpEx) and Zakat charges increased by SAR 78 million and SAR 16 million YoY, respectively.

In Q2 2023, the company’s net profit surged 91% to SAR 372.77 million from SAR 238.86 million in the prior-year period, as revenue jumped 35.13% YoY, leading gross profit to rise by 45.76% YoY.

Impairment in intangible assets decreased by SAR 27 million, while income from Murabaha deposits increased by SAR 22 million YoY. On the other hand, OpEx increased by 11.94% on an annual basis.

The net earnings also jumped by 15.6% from SAR 322.4 million in Q1 2023, thanks to a 9.01% rise in revenue.

Shareholders’ equity, no minority interest, reached SAR 3.52 billion by the end of the six-month period, compared to SAR 2.72 billion a year earlier.

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