Elm profit jumps 64% to SAR 930 mln in 2022; Q4 at SAR 212 mln

Elm Co. reported a net profit of SAR 930 million for 2022, a rise of 64% from SAR 566.9 million in 2021.

The company attributed the profit rise to an increase in revenue by 20.3% (SAR 778 million), which led to a rise in gross profit by 42.55% (SAR 563 million).

Furthermore, Murabaha deposit income grew by SAR 32.2 million and other income increased by SAR 16.9 million. However, this was offset by a decrease in the change in fair value of investments through profit or loss by SAR 25.1 million and an increase in Zakat expense by SAR 11.2 million.

However, the company cited a rise in operating expenses by 28.96% (SAR 205 million) as a result of an increase in general and administrative expenses by SAR 67 million, an increase in the expected credit losses by SAR 58.8 million and a rise in the selling and marketing expenses by SAR 38.5 million. The impairment of intangible assets also rose by SAR 36.5 million.

The fourth-quarter net profit leapt 92% year-on-year (YoY) to SAR 212 million.

On a sequential basis, net profit slumped 22.4% from SAR 273.36 million.

Shareholders’ equity, no minority interest, increased to SAR 3.04 billion as of Dec. 31, 2022, from SAR 2.81 billion a year earlier.

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