Armah Sports Co. announces its Interim Financial results for the period ending on 2024-06-30 ( Six Months )
| Element List | Current Period | Similar period for previous year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 73.6 | 26.1 | 181.992 | ||
| Net profit (Loss) | 9.1 | -6.1 | - | ||
| Total Shareholders Equity (after Deducting Minority Equity) | 387.1 | 378 | 2.407 | ||
| Profit (Loss) per Share | 0.28 | -0.21 | |||
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | -45.3 | 13.786 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is | The company achieved growth in total revenue, reaching SAR 73.6 million in the first half of fiscal year 2024. This represents a remarkable growth of 182% compared to the same period in fiscal year 2023. The reasons for the change in Revenues are as follows:
Membership Revenue: There was a substantial increase of 179% in membership revenue compared to the same period in 2023. This surge was primarily attributed to the growth in the number of members per fitness club and the opening of four new fitness clubs during the current fiscal year.
Personal Training Revenue: Revenue from personal training experienced a remarkable growth of over 200% compared to the same period in fiscal year 2023. This increase indicates a higher demand for personal training services provided by ARMAH.
These financial results underscore the company's successful strategies in expanding its customer base, enhancing its service offerings, and effectively capitalizing on market opportunities. The growth in membership revenue and personal training revenue reflects the company's ability to attract more customers and deliver quality services, thereby driving overall revenue growth. |
| 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 significant increase in net profit in the first half of the fiscal year 2024, reaching a net profit of SAR 9.1 million compared to a net loss of SAR 6.1 million last year, representing a significant growth of SAR 15.2 million. This can be attributed primarily to the increase in revenues. However, it is important to note that this success was achieved despite the following:
Total cost of revenues: There was a 97% increase in operating cost of revenues compared to the same period in 2023. This increase is mainly due to the expansion of operating centers. It is worth noting that costs remained stable, while revenues increased gradually.
Finance costs: The company also faced an increase in financing costs, which resulted from higher interest rates compared to rates in 2023, in addition to the opening of all fitness centers that were under construction in 2023.
The company’s ability to overcome these emerging operational challenges demonstrates its flexibility and effective management strategies. By strategically managing its operational expansion and mitigating the impact of higher financing costs. |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Reclassification of Comparison Items | Certain figures have been reclassified to comply with the current period presentation of the financial statements. |
Comments