Leen Alkhair’s profit drops 24% to SAR 10.8 mln in H1 2022

Leen Alkhair Trading Co., which will list soon on Nomu-Parallel Market, reported a 24% fall in H1 2022 net profit to SAR 10.8 million, from SAR 14.3 million in the prior-year period.

The company was hit by a 32% increase year-on-year (YoY) in the cost of sales. Gross profit margins contracted to 19% from 26% in H1 2021.

Net profit margins declined to 10% from 16% in H1 2021. General and administrative (G&A) expenses increased 5% YoY. The company incurred Zakat expenses during H1 2022, compared to nil a year earlier.

The profit drop came despite a 20% revenue leap YoY in H1 2022. Additionally, selling and marketing expenses, as well finance costs decreased by 45% and 68% YoY, respectively, in the same period.

Shareholders’ equity, no minority interest, rose to SAR 95.157 million as of June 30, 2022, from SAR 84.316 million a year earlier.

Net cash from operations jumped to SAR 22 million as of June 30, 2022. Cash and cash equivalents (CCE) stood at SAR 5.9 million in the six-month period.

By product, Leen Al Khair’s revenue from fresh vegetables reached SAR 89.14 million, accounting for 81.34% of total revenue in H1 2022. Revenue from fresh fruits stood at SAR 16.89 million, representing 15.41% of total top line. Revenue from sauces and spices came in at SAR 3.56 million, or 3.25% of total revenue.

By region, revenue from the Central Region hit SAR 73.68 million, making up 67.23% of total top line in the six-month period. Revenue from the Western Region and Eastern Region stood at SAR 20.5 million and SAR 15.41 million, accounting for 18.70% and 14.06% of total revenue, respectively.