Armah Sports widens losses to SAR 21.2 mln in 2022

Armah Sports Co., which is slated to be listed on the Nomu-Parallel Market, said its net loss widened to SAR 21.2 million in 2022 from SAR 11.2 million in 2021.

The losses were attributed to a lower operating profit margin, which fell from 24.6% in 2021 to 1.57% in 2022 on an 89% rise in general and administrative expenses to SAR 16.3 million from SAR 8.6 million a year earlier.

Financing costs reached SAR 4.7 million, resulting from an increase in loan financing costs by more than 100% year-on-year (YoY). This was in addition to a rise in the cost of revenue and selling and marketing expenses.

However, gross profit margin rose from 3.7% in 2021 to 14.6% in 2022 due to the increase in revenues by more than 100% YoY.

Meanwhile, revenue grew to SAR 13.2 million in 2022 from SAR 437,000 in 2021 due to increased revenues from subscriptions, memberships and personal training.

Other income also jumped to SAR 3.9 million in 2022 from SAR 124,000 a year earlier due to the inclusion of income from rental concessions and profits from lease terminations.

Total shareholders’ equity, no minority interest, stood at SAR 255.10 million by the end of 2022, from SAR 27.46 million a year earlier.