SAL Saudi Logistics H1 2023 net profit up 27% to SAR 213.2 mln; Q2 at SAR 108.8 mln

SAL Saudi Logistics Services Co. reported a net of SAR 213.2 million in the first six months of 2023, a 27% increase from SAR 168.3 million a year earlier.

The earnings increase was primarily due to higher revenues, which increased to reach SAR 679.33 million compared to SAR 589.95 million for the same period a year earlier due to an increase of SAR 83.76 million in air cargo handling revenues and a rise of SAR 5.61 million in logistics solutions revenues.

There was also an increase in the gross profit margin from 48% for the same period to 53.5% for the current period, driven by a lower ratio of cost of revenue to revenue due to a decrease in the ratio of cargo handling cost to revenues to 48% compared to 52% for the same period last year.

Operating profit margin grew from 34% in H1 2022 to 37% in H1 2023 despite the increase in administrative and marketing expenses.

In addition, financing income surged to SAR 23.5 million, compared to SAR 6.8 million a year earlier. This came despite higher financing costs and Zakat expense.

In Q2 2023, net profit inched up 17.7% year-on-year (YoY) to SAR 108.8 million from SAR 92.4 million in the year-earlier period.

On a sequential basis, net profit grew 4.3% from SAR 104.35 million in Q1 2023.

Total shareholders’ equity, no minority interest, stood at SAR 1.08 billion by the end of H1 2023, compared to SAR 1.00 billion in the year-earlier period.