Bawan net profit falls 4% to SAR 163 mln in 2022; Q4 at SAR 30 mln

Bawan Co.’s net profit slipped 4% to SAR 163 million in 2022, compared to SAR 170.3 million a year earlier.

The company noted an exceptional non-recurring profit of SAR 15.3 million in Q4 2021, as insurance claim for a fire accident in one of its plastics segment factories.

Additionally, Bawan’s finance cost increased by SAR 12.7 million in 2022 due to higher cost of borrowing associated with the increase in SAIBOR rates.

The net profit of the metal and wood segment and the plastics segment decreased mainly due to the increase in the cost of revenue, which led to the decrease in profit margin.

Meanwhile, the company’s sales rose 12.5% year-on-year (YoY). The electrical segment’s net profit grew by SAR 20.3 million to SAR 27.4 million, and the concrete segment achieved a net profit of SAR 16.2 million in 2022 compared to a loss of SAR 18.1 million in the previous.

In addition, operational expenses decreased 4.3% YoY.

In Q4 2022, Bawan posted a 33% YoY decline in net profit after Zakat and tax to SAR 30 million.

On a sequential basis, Q4 profit fell 21.8% from SAR 38.12 million.

Shareholders’ equity, after minority interest, grew to SAR 863.48 million as of Dec. 31, 2022, from SAR 739.5 million a year earlier.

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