Bawan’s profit drops 37% to SAR 59.6 mln in H1 2023, Q2 at SAR 25 mln

Bawan’s profit drops 37% to SAR 59.6 mln in H1 2023, Q2 at SAR 25 mln

03/08/2023 Argaam Exclusive

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Bawan Co. reported a net profit of SAR 59.6 million in H1 2023, a decline of 37% from SAR 94.9 million in the year earlier period.



Financials (M)

Item 6m 2022 6m 2023 Change‬
Revenues 1,691.36 1,660.53 (1.8 %)
Gross Income 224.53 179.54 (20.0 %)
Operating Income 121.85 84.02 (31.0 %)
Net Income 94.90 59.57 (37.2 %)
Average Shares 60.00 60.00 -
EPS (Riyals) 1.58 0.99 (37.2 %)

The decline was driven by lower income from the metal and wood industries segment on a decrease in profit margins.  

 

In addition, there was an increase in the financing cost by SAR 9.2 million on higher borrowing costs associated with rising SAIBOR rates. 

 

Bawan incurred losses of SAR 5.4 million from discontinued operations of the concrete industries segment, compared to SAR 2.1 million for the same period of the previous year. 

 

This came despite lower operating and Zakat expenses, in addition to an increase in the electrical industries’ net profit of SAR 41.3 million during the current period, compared to SAR 9.6 million a year ago.  



Current Quarter Comparison (M)

Compared With The
Item Q2 2022 Q2 2023 Change‬
Revenues 798.25 768.08 (3.8 %)
Gross Income 106.94 83.96 (21.5 %)
Operating Income 57.39 36.19 (36.9 %)
Net Income 44.56 25.04 (43.8 %)
Average Shares 60.00 60.00 -
EPS (Riyals) 0.74 0.42 (43.8 %)

In Q2 2023, the company’s net profit fell 43.8% to SAR 25.04 million from SAR 44.56 million in the prior year period on lower income from the metal and wood industries segment and higher cost of finance of SAR 3.3 million.

 

Sequentially, Bawan’s profit retreated 27.5% from SAR 25.04 million in Q1 2023.   

 

Total shareholders' equity, excluding minority interest, reached SAR 884.05 million as of June 30, 2023, compared to SAR 834.417 million in the prior-year period. 



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2014 773.49 35.3 % 113.12 37.0 % 46.72 15.8 % 0.78
Q2 2014 758.47 22.4 % 107.51 2.2 % 47.10 7.1 % 0.79
Q3 2014 613.76 (0.4 %) 92.10 (18.2 %) 45.42 1.0 % 0.76
Q4 2014 654.49 2.1 % 81.30 (12.8 %) 37.22 (4.3 %) 0.62
Q1 2015 661.53 (14.5 %) 76.76 (32.1 %) 27.33 (41.5 %) 0.46
Q2 2015 646.04 (14.8 %) 71.90 (33.1 %) 23.81 (49.5 %) 0.40
Q3 2015 546.48 (11.0 %) 70.02 (24.0 %) 20.13 (55.7 %) 0.34
Q4 2015 549.94 (16.0 %) 76.47 (5.9 %) 16.88 (54.6 %) 0.28
Q1 2016 611.19 (7.6 %) 83.15 8.3 % 28.52 4.4 % 0.48
Q2 2016 642.66 (0.5 %) 120.65 67.8 % 53.22 123.6 % 0.89
Q3 2016 535.02 (2.1 %) 73.70 5.3 % 21.11 4.9 % 0.35
Q4 2016 529.76 (3.7 %) 74.24 (2.9 %) 11.52 (31.8 %) 0.19
Q1 2017 549.99 (10.0 %) 68.85 (17.2 %) 21.59 (24.3 %) 0.36
Q2 2017 475.66 (26.0 %) 53.25 (55.9 %) 8.90 (83.3 %) 0.15
Q3 2017 506.94 (5.2 %) 62.89 (14.7 %) 23.29 10.4 % 0.39
Q4 2017 596.16 12.5 % 78.21 5.3 % 17.23 49.6 % 0.29
Q1 2018 522.35 (5.0 %) 56.60 (17.8 %) 14.02 (35.1 %) 0.23
Q2 2018 465.77 (2.1 %) 39.73 (25.4 %) 1.60 (82.0 %) 0.03
Q3 2018 443.81 (12.5 %) 40.11 (36.2 %) (4.13) (117.7 %) (0.07)
Q4 2018 521.52 (12.5 %) 19.14 (75.5 %) (229.84) (1433.9 %) (3.83)
Q1 2019 596.81 14.3 % 71.18 25.8 % 15.04 7.3 % 0.25
Q2 2019 519.17 11.5 % 58.94 48.4 % 3.03 89.3 % 0.05
Q3 2019 525.59 18.4 % 57.07 42.3 % 3.26 179.1 % 0.05
Q4 2019 593.66 13.8 % 62.00 223.9 % 5.30 102.3 % 0.09
Q1 2020 644.14 7.9 % 80.24 12.7 % 15.21 1.1 % 0.25
Q2 2020 520.90 0.3 % 61.21 3.8 % 15.46 410.9 % 0.26
Q3 2020 548.78 4.4 % 86.93 52.3 % 29.58 806.7 % 0.49
Q4 2020 709.46 19.5 % 113.49 83.0 % 29.92 464.7 % 0.50
Q1 2021 862.12 33.8 % 102.46 27.7 % 41.68 174.1 % 0.69
Q2 2021 788.82 51.4 % 115.43 88.6 % 43.12 178.8 % 0.72
Q3 2021 727.44 32.6 % 95.89 10.3 % 40.93 38.4 % 0.68
Q4 2021 849.04 19.7 % 111.70 (1.6 %) 44.61 49.1 % 0.74
Q1 2022 893.11 3.6 % 117.59 14.8 % 50.35 20.8 % 0.84
Q2 2022 798.25 1.2 % 106.94 (7.4 %) 44.56 3.3 % 0.74
Q3 2022 812.96 11.8 % 89.42 (6.7 %) 38.12 (6.9 %) 0.64
Q4 2022 859.94 1.3 % 90.16 (19.3 %) 29.83 (33.1 %) 0.50
Q1 2023 892.45 (0.1 %) 95.44 (18.8 %) 34.53 (31.4 %) 0.58
Q2 2023 768.08 (3.8 %) 83.96 (21.5 %) 25.04 (43.8 %) 0.42

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2014 16.01 % 11.23 % 7.36 %
Q2 2014 15.29 % 10.41 % 6.54 %
Q3 2014 14.57 % 9.81 % 6.02 %
Q4 2014 14.07 % 9.60 % 5.89 %
Q1 2015 13.30 % 8.89 % 5.18 %
Q2 2015 12.50 % 8.18 % 4.65 %
Q3 2015 11.96 % 7.43 % 3.80 %
Q4 2015 12.28 % 7.47 % 3.67 %
Q1 2016 12.81 % 7.81 % 3.80 %
Q2 2016 14.90 % 9.35 % 5.05 %
Q3 2016 15.13 % 9.52 % 5.12 %
Q4 2016 15.17 % 9.26 % 4.93 %
Q1 2017 14.95 % 9.12 % 4.76 %
Q2 2017 12.92 % 7.55 % 3.02 %
Q3 2017 12.57 % 7.50 % 3.17 %
Q4 2017 12.36 % 7.64 % 3.34 %
Q1 2018 11.94 % 7.16 % 3.02 %
Q2 2018 11.35 % 6.60 % 2.68 %
Q3 2018 10.58 % 5.59 % 1.42 %
Q4 2018 7.96 % 2.70 % (1.49 %)
Q1 2019 8.39 % 3.04 % (1.39 %)
Q2 2019 9.10 % 3.54 % (1.28 %)
Q3 2019 9.54 % 3.97 % (0.89 %)
Q4 2019 11.15 % 5.57 % 0.60 %
Q1 2020 11.31 % 5.80 % 0.91 %
Q2 2020 11.40 % 6.05 % 1.31 %
Q3 2020 12.58 % 7.09 % 2.23 %
Q4 2020 14.11 % 8.54 % 3.64 %
Q1 2021 13.78 % 8.52 % 4.08 %
Q2 2021 14.38 % 8.97 % 4.77 %
Q3 2021 13.84 % 8.80 % 5.01 %
Q4 2021 13.18 % 8.28 % 5.11 %
Q1 2022 13.52 % 8.70 % 5.33 %
Q2 2022 13.22 % 8.74 % 5.36 %
Q3 2022 12.69 % 8.60 % 5.14 %
Q4 2022 12.01 % 8.46 % 4.84 %
Q1 2023 11.36 % 7.99 % 4.37 %
Q2 2023 10.77 % 7.51 % 3.68 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2014 60.00 2.91 3.25 12.68
Q2 2014 60.00 2.96 3.04 12.18
Q3 2014 60.00 2.97 2.80 12.51
Q4 2014 60.00 2.94 2.75 12.66
Q1 2015 60.00 2.62 2.32 12.69
Q2 2015 60.00 2.23 2.00 12.66
Q3 2015 60.00 1.81 1.59 12.79
Q4 2015 60.00 1.47 1.47 12.79
Q1 2016 60.00 1.49 1.49 13.02
Q2 2016 60.00 1.98 1.98 13.65
Q3 2016 60.00 2.00 2.00 13.62
Q4 2016 60.00 1.91 1.91 13.52
Q1 2017 60.00 1.79 1.79 13.64
Q2 2017 60.00 1.05 1.05 13.39
Q3 2017 60.00 1.09 1.09 13.78
Q4 2017 60.00 1.18 1.18 14.03
Q1 2018 60.00 1.06 1.06 13.84
Q2 2018 60.00 0.94 0.94 13.86
Q3 2018 60.00 0.48 0.48 13.80
Q4 2018 60.00 (3.64) (0.49) 10.11
Q1 2019 60.00 (3.62) (0.47) 10.36
Q2 2019 60.00 (3.60) (0.45) 10.42
Q3 2019 60.00 (3.48) (0.32) 10.48
Q4 2019 60.00 0.44 0.23 10.44
Q1 2020 60.00 0.45 0.35 10.68
Q2 2020 60.00 0.65 0.50 10.94
Q3 2020 60.00 1.09 0.86 11.43
Q4 2020 60.00 1.50 1.47 11.54
Q1 2021 60.00 1.94 1.80 11.64
Q2 2021 60.00 2.41 2.31 12.36
Q3 2021 60.00 2.59 2.58 12.32
Q4 2021 60.00 2.84 2.75 12.33
Q1 2022 60.00 2.98 2.90 13.16
Q2 2022 60.00 3.01 2.92 13.91
Q3 2022 60.00 2.96 2.87 13.69
Q4 2022 60.00 2.71 2.71 14.39
Q1 2023 60.00 2.45 2.45 14.32
Q2 2023 60.00 2.13 2.04 14.73

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2014 16.90 15.13 3.88
Q2 2014 21.00 20.46 5.10
Q3 2014 22.05 23.40 5.23
Q4 2014 13.46 14.41 3.13
Q1 2015 15.62 17.62 3.22
Q2 2015 18.03 20.15 3.18
Q3 2015 15.58 17.70 2.20
Q4 2015 15.89 15.89 1.83
Q1 2016 11.49 11.49 1.31
Q2 2016 11.78 11.78 1.71
Q3 2016 8.58 8.58 1.26
Q4 2016 11.87 11.87 1.67
Q1 2017 10.81 10.81 1.42
Q2 2017 16.67 16.67 1.31
Q3 2017 15.70 15.70 1.24
Q4 2017 14.80 14.80 1.25
Q1 2018 16.31 16.31 1.25
Q2 2018 18.30 18.30 1.23
Q3 2018 29.58 29.58 1.03
Q4 2018 NEG NEG 1.31
Q1 2019 NEG NEG 1.36
Q2 2019 NEG NEG 1.31
Q3 2019 NEG NEG 1.41
Q4 2019 36.18 71.30 1.54
Q1 2020 24.86 32.12 1.04
Q2 2020 19.94 26.15 1.19
Q3 2020 17.23 21.92 1.65
Q4 2020 16.53 16.88 2.15
Q1 2021 16.74 18.13 2.80
Q2 2021 16.84 17.53 3.28
Q3 2021 16.71 16.81 3.52
Q4 2021 12.35 12.74 2.84
Q1 2022 11.13 11.47 2.52
Q2 2022 9.54 9.83 2.06
Q3 2022 11.91 12.27 2.57
Q4 2022 10.81 10.81 2.04
Q1 2023 11.51 11.51 1.97
Q2 2023 17.06 17.73 2.46

Business Segments (Million)

Compared With The
Period Steel and Wood Electrical products Plastic concrete Iron Industry Wood Others
Q1 2014 - 214.90 - 49.87 354.48 154.23 -
Q2 2014 - 213.59 - 48.86 330.29 165.73 -
Q3 2014 - 140.24 - 38.50 243.33 191.69 -
Q4 2014 - 119.18 - 53.22 316.65 165.44 -
Q1 2015 - 90.02 - 57.09 330.33 184.08 -
Q2 2015 - 113.47 - 51.96 301.33 179.29 -
Q3 2015 - 119.82 - 46.97 215.28 164.41 -
Q4 2015 - 146.98 - 51.18 200.32 151.46 -
Q1 2016 398.15 161.52 - 51.52 - - -
Q2 2016 406.92 184.17 - 51.57 - - -
Q3 2016 325.99 165.20 - 43.83 - - -
Q4 2016 365.21 116.84 - 47.70 - - -
Q1 2017 390.68 110.76 - 48.56 - - -
Q2 2017 337.01 94.47 - 44.18 - - -
Q3 2017 400.03 63.71 - 43.20 - - -
Q4 2017 455.36 91.42 - 49.38 - - -
Q1 2018 408.92 75.86 - 37.58 - - -
Q2 2018 366.07 67.85 - 31.85 - - -
Q3 2018 344.77 59.99 - 39.06 - - -
Q4 2018 417.37 58.45 - 45.70 - - -
Q1 2019 404.71 66.12 75.71 50.27 - - -
Q2 2019 323.14 68.05 82.88 45.10 - - -
Q3 2019 332.42 67.62 75.16 50.39 - - -
Q4 2019 403.10 59.25 76.31 55.01 - - -
Q1 2020 450.93 72.47 73.18 47.57 - - -
Q2 2020 350.47 78.94 56.95 34.55 - - -
Q3 2020 343.45 94.27 63.06 48.00 - - -
Q4 2020 495.11 96.22 69.70 48.43 - - -
Q1 2021 601.67 136.63 81.02 42.80 - - -
Q2 2021 552.98 118.87 86.38 30.59 - - -
Q3 2021 499.75 103.52 81.64 42.52 - - -
Q4 2021 584.15 89.85 115.91 59.13 - - -
Q1 2022 618.82 179.63 94.66 57.32 - - -
Q2 2022 564.05 139.59 94.62 - - - -
Q3 2022 594.44 129.11 89.41 - - - -
Q4 2022 612.18 160.32 87.45 - - - -
Q1 2023 591.51 206.48 94.47 - - - -
Q2 2023 519.62 165.81 82.66 - - - -

Analysts Estimates (Million)

Item Q2 2023 (e) Q2 2023 (a) Change‬
Average 35.45 25.04 (29.4 %)

Estimates vs Actual (Million)

Item Q2 2023 (e) Q2 2023 (a) Change
OSOOL AND BAKHEET 27.90 25.04 (10.3) %
Al Rajhi Capital 43.00 25.04 (41.8) %

Current
Market Cap (M Riyal) 2,694.00
Enterprise Value (EV) (M) 3,091.54
Shares Outstanding ((M)) 60.00
EPS ( Riyal) (TTM) 2.18
Book Value (BV) ( Riyal) 14.97
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 21.92
P/E (TTM) 20.62
Price/book 3.00
Return on Average Assets (%) (TTM) 5.7
Return on Average Equity (%) (TTM) 14.9

Share Price

44.90
0.25 0.56 %

Bawan Co. (BAWAN)


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