Bawan 2023 profit falls to SAR 136M; Q4 at SAR 36.4M

Bawan Co.’s net profit slipped to SAR 136 million in 2023, compared to SAR 163 million a year earlier.

The annual earnings were hurt by a drop in the metal and wood segment’s net profit amid decreased average selling prices, which pushed profit margin lower.

The company realized a net loss of SAR 2.5 million from discontinued operations related to the concrete industries segment. Bawan exited the segment in mid-2023.

An increase of SAR 9.5 million in finance costs also weighed on Bawan’s 12-month results, due to the higher cost of borrowing and SAIBOR. Operating expenses (OpEx) also increased amid improved volume of activity.

On the other hand, the net profit of the electrical industries segment rose by SAR 30.6 million to SAR 58 million in 2023, compared to SAR 27.4 million in 2022, mainly on an increase in sales value and volume, as well as average selling prices, which led to an improvement in the profit margin.

Bawan also recorded higher net profit from the plastics industries segment, mainly due to the increase in gross profit and a decrease in the cost of sales.

Other income and profit of investment in financial assets at fair value through profit or loss also increased. In addition, Zakat expenses edged lower.

The fourth-quarter net profit jumped 22% to SAR 36.4 million from SAR 29.8 million in Q4 2022. The company noted an improvement in the profit margin in the metal, wood and plastic industries segments and a decrease in cost of financing.

Bawan’s net profit declined 9.3% from SAR 40.1 million in Q3 2023.

Total shareholders’ equity, after minority interest, rose to SAR 919.92 million as of Dec. 31, 2023, compared to SAR 863.48 million a year earlier.

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