IUTC’s H1 2024 net profit plunges 86% to SAR 1.2M

International Unions for Trade Co. (IUTC), which will list shares soon on the Nomu-Parallel Market, reported an 86% slump in H1 2024 net profit to SAR 1.2 million, from SAR 9 million in the corresponding period of 2023.

The company, which sells pipes and valves, and operates in the general contracting sector, attributed the profit drop to a decline in revenue to SAR 68.3 million, from SAR 105.7 million in H1 2023. Revenue from pipe sales fell by 41% year-on-year (YoY).

Similarly, annual revenue from fittings sales also declined, despite a rise in revenue from contracting activities, valves and smart meters.

The company’s gross profit margin contracted to 10% in H1 2024, from 12% in the year-earlier period, as the cost of sales/total sales ratio slumped to 90%.

Operating profit margin decreased to 4% in H1 2024, from 10% a year earlier, on higher operating expenses (Opex), as well as selling, general, administrative, and marketing expenses.

EBITDA also dropped to SAR 3.3 million, from SAR 11 million in H1 2023.

On the topline level, revenue from pipe sales for the current period amounted to SAR 59.1 million, representing 86.5% of total revenue, compared to SAR 100.1 million for H1 2023.

Revenue from valve sales came in at SAR 3.3 million, accounting for 4.9% of total revenue, compared to SAR 2.5 million for the same period last year.

IUTC posted SAR 2.6 million in revenue from smart meters, making up 3.9% of total revenue, compared to SAR 1.2 million for H1 2023.

Revenue from contracting activities for H1 2024 amounted to SAR 1.7 million (representing 2.5% of total revenue), compared to nil for the same period last year.

Revenue from pipe fittings declined to SAR 1.4 million, or 2.1% of total revenue, from SAR 1.9 million for the same period last year.

Iron casting and manufacturing revenue for the current period amounted to SAR 83,000, representing 0.1% of the total topline.

View more financial results