Bawan Co. announces its Annual Financial results for the period ending on 2023-12-31
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 3,351,813 | 3,364,258 | -0.37 | ||
| Gross Profit (Loss) | 385,734 | 404,107 | -4.55 | ||
| Operational Profit (Loss) | 177,130 | 207,360 | -14.58 | ||
| Net profit (Loss) | 136,040 | 162,850 | -16.46 | ||
| Total Comprehensive Income | 134,439 | 174,976 | -23.17 | ||
| Total Share Holders Equity (After Deducting the Minority Equity) | 919,928 | 863,489 | 6.54 | ||
| Profit (Loss) per Share | 2.27 | 2.71 | |||
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current year compared to the last year | Despite the increase in sales of the electrical industries sector and sales of metal products, the decrease in average selling prices in the metal and wood industries sector negatively affected the company’s revenues, decreasing slightly by 0.4% compared to the previous year. |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | The reason for the decrease in net profit attributable to shareholders of the company during the current year as compared to the previous year was mainly due to the following:
- The decrease in the net profit of the metal and wood industries sector, mainly due to the decrease in average selling prices, which led to the decrease in profit margin. - Realizing a net loss from discontinued operations related to the concrete industries sector, by the amount of SAR 2.5 million, which the company exited in mid-2023. - The increase in the finance cost by amount of SAR 9.5 million due to the increase in the cost of borrowing associated with the increase in SIBOR rates. - The increase in the operational expenses associated with the increase in the volume of activity.
This decrease comes despite the following:
- The increase in the net profit of the electrical industries sector by amount of SAR 30.6 million, as the sector achieved a net profit of SAR 58 million during the current year as compared to profit of SAR 27.4 million for the previous year, mainly due to the increase in sales affected by the increase in quantities sold and average selling prices, which led to an improvement in the profit margin. - The increase in the net profit of the plastics industries sector, mainly due to the increase in gross profit affected by the decrease in the cost of sales. - The increase in the other income and the profit of investment in financial assets at fair value through profit or loss. - The decrease in the Zakat expense. |
| Statement of the type of external auditor's report | Unmodified opinion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | N/A |
| Reclassification of Comparison Items | N/A |
| Additional Information | It is worth noting that during the fourth quarter of 2023, the company’s net profit amounted to SAR 36.4 million, with an increase of 22% as compared to the same quarter of the previous year, mainly due to the improvement in the profit margin of the metal and wood and plastic industries sectors and the decrease in financing costs.
The company was able to reduce the volume of loans in 2023 by 29%, as net loans amounted to SAR 491.4 million, compared to SAR 594.4 million at the end of the previous year.
Non-controlling interests share during the year 2023 amounted to a net profit of SAR 9 million as compared to a profit of SAR 15.3 million for the previous year. |
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