Net profit of SR 37.92 million for the third quarter of financial year 2023 (“Q3 2023”) compared to a net profit of SR 16.79 million for the third quarter of financial year 2022 (“Q3 2022”) is due to the following main reasons: a) Gross profit increased to SR 63.54 million in Q3 2023 from SR 30.36 million in Q3 2022, as a result of the increase in volume mainly due to consolidating the results of Global Pipe Company (“GPC”), and improved mix of products sold. b) Other income increased to SR 5.21 million in Q3 2023 from SR 0.67 million in Q3 2022 c) Reversal of provision amounting to SR 1.58 million in Q3 2023 compared to a trade receivable bad debt provision amounting to SR (0.17) million in Q3 2022. The above listed positive changes were partially offset by an increase in finance charges to SR 14.46 million in Q3 2023 from SR 3.93 million in Q3 2022, an increase in administrative expenses to SR 11.87 million in Q3 2023 from SR 5.58 million in Q3 2022, and an increase in selling, marketing and distribution expenses to SR 5.91 million in Q3 2023 from SR 4.27 million in Q3 2022. The aforementioned increase in expenses were mainly due to consolidating the results of GPC. The EBITDA represents earnings before interest, tax, depreciation, and amortization. SSP recorded an EBITDA of SR 69.43 million in Q3 2023, compared to SR 31.85 million in Q3 2022. SSP recorded a negative free cash flow of SR (3.37) million in Q3 2023 compared to SR (112.39) million in Q3 2022. Net debt increased to SR 548.75 million at the end of Q3 2023 from SR 213.79 million at the end of Q3 2022, as a result of consolidating the financial position of GPC. |
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