Bawan’s profit drops 37% to SAR 59.6 mln in H1 2023, Q2 at SAR 25 mln

Bawan Co. reported a net profit of SAR 59.6 million in H1 2023, a decline of 37% from SAR 94.9 million in the year earlier period.

The decline was driven by lower income from the metal and wood industries segment on a decrease in profit margins.  

In addition, there was an increase in the financing cost by SAR 9.2 million on higher borrowing costs associated with rising SAIBOR rates. 

Bawan incurred losses of SAR 5.4 million from discontinued operations of the concrete industries segment, compared to SAR 2.1 million for the same period of the previous year. 

This came despite lower operating and Zakat expenses, in addition to an increase in the electrical industries’ net profit of SAR 41.3 million during the current period, compared to SAR 9.6 million a year ago.  

In Q2 2023, the company’s net profit fell 43.8% to SAR 25.04 million from SAR 44.56 million in the prior year period on lower income from the metal and wood industries segment and higher cost of finance of SAR 3.3 million.

Sequentially, Bawan’s profit retreated 27.5% from SAR 25.04 million in Q1 2023.   

Total shareholders' equity, excluding minority interest, reached SAR 884.05 million as of June 30, 2023, compared to SAR 834.417 million in the prior-year period. 

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