7203 · 06/11/2022 08:05:26 · Announcement #70816 · View on Saudi Exchange

Elm Company announces its interim condensed Consolidated Financial Results for the Period Ending on 30-09-2022 (Nine Months)

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 1,16796720.681,03912.32
Gross Profit (Loss) 45132737.9238317.75
Operational Profit (Loss) 27319639.2823914.22
Net Profit (Loss) after Zakat and Tax 27317853.3719540
Total Comprehensive Income 27317853.3719540
All figures are in (Millions) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Sales/Revenue 3,2982,75819.58
Gross Profit (Loss) 1,24190936.52
Operational Profit (Loss) 78249956.71
Net Profit (Loss) after Zakat and Tax 71845757.11
Total Comprehensive Income 71845757.11
Total Share Holders Equity (after Deducting Minority Equity) 2,8442,6915.68
Profit (Loss) per Share 9.25.71
All figures are in (Millions) Saudi Arabia, Riyals
Element ListExplanation
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is The Company achieved a net profit after Zakat of SR 273 million in Q3 - 2022, with an increase of 53.37% (SR 96 million) compared to the same quarter of the last year. This increase is due to:

Increase in revenue by 20.682% (SR 201 million), which led to an increase in gross profit by 37.92% (SR 123 million). The increase in revenue resulted from an increase in Digital Business revenue by 67.10%, and increase in Professional Services revenue by 29.90%, this was partially offset by the decrease in Business Process Outsourcing revenue by 26.83%.

On the other hand, there was an increase in operating expenses by 35.66% (SR 46.7 million), as a result of increase in expected credit losses by SR 21.6 million, increase in the general and administration expenses by SR 16 million, and increase in the selling and marketing expenses by SR 8.8 million.

Furthermore, there was an increase in income from Murabha deposit by SR 7.8 million, and increase in other income by SR 13.3 million.The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is The Company achieved a net profit after Zakat of SR 273 million in Q3 - 2022, with an increase of 40% (SR 78 million) compared to the previous quarter of the current year. This increase is due to:

Increase in revenue by 12.319% (SR 128 million), which led to an increase in gross profit by 17.754% (SR 68 million). The increase in revenue resulted from increase in Digital Business revenue by 11.92%, and increase in Business Process Outsourcing revenue by 19.10%, this was partially offset by the decrease in Professional Services revenue by 26.23%.

On the other hand, there was an increase in operating expenses by 22.97% (SR 33.2 million), as a result of increase in expected credit losses by SR 19.2 million, increase in the general and administration expenses by SR 6.8 million, and increase in the selling and marketing expenses by SR 4.3 million.

Furthermore, there was an increase in income from Murabha deposit by SR5.9 million and increase in other income by SR10.3 million, on the other side there was a decrease in impairment of Intangible assets by SR 26 million.The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is The Company achieved a net profit after Zakat of SR 718 million for the nine months period of the year 2022, with an increase of 57.111% (SR 261 million) compared to the same period of the last year. This increase is due to:

Increase in revenue by 19.579% (SR 540 million), which led to an increase in gross profit by 36.523% (SR 332 million). The increase in revenue resulted from an increase in Digital Business revenue by 41.14%, an increase in Professional Services revenue by 65.65%, this was partially offset by the decrease in Business Process Outsourcing revenue by 11.92%.

On the other hand, there was an increase in operating expenses by 12.10% (SR 49.5 million), as a result of increase in the general and administration expenses by SR 36.4 million, and increase in selling and marketing expenses by SR 25.7 million, this was offset by the decrease in expected credit losses by SR 14.1 million.

Furthermore, an impairment of Intangible assets was recorded by SR 28.1 Million, and there was an increase in Zakat expense by SR 9.3 Million.Statement of the type of external auditor's report Unmodified conclusionReclassification of Comparison Items Certain comparative figures have been reclassified to conform to the current period presentation of the Interim condensed consolidated financial statements, with no impact on comparative period results.Additional Information - EBITDA for the nine months period ended September 30, 2022 amounted to SR 866 million compared to SR 583 million for the same quarter of the last year, with an increase of 48.7%.

- For earning per share calculation purposes, the number of shares for the three and six months periods ended September 30, 2021 has been adjusted retrospectively due to the capital increase.

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