Bawan 9M 2023 profit down 25% to SAR 99.7 mln; Q3 at SAR 40.1 mln

Bawan Co. posted a 25% profit decline in the first nine months of 2023 to SAR 99.7 million, compared to SAR 133 million in the year-earlier period.

The profit decline is attributed to lower net profits of the metal, wood and plastic industries segment, mainly due to the decrease in average selling prices, which led to a drop in the profit margin.

The company recorded an increase in the finance cost due to the increase in the cost of borrowing associated with the increase in SAIBOR rates, in addition to realizing loss from discontinued operations related to the concrete industries segment, which amounted to SAR 2.5 million. In addition, operational expenses edged higher.

This was partially offset by a year-on-year (YoY) increase in net profit of the electrical industries segment, higher income from investment in financial assets at fair value and lower Zakat expenses.

In Q3 2023, net profit inched up 5.2% to SAR 40.10 million from SAR 38.12 million in Q3 2022.

On a sequential basis, the bottom line grew 60.2% from SAR 25.04 million in Q2 2023.

Shareholders’ equity, no minority interest, reached SAR 885.16 million as of Sept. 30, 2023, up from SAR 821.54 million a year earlier.

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