Elm Co. — Interim / Quarterly Report 2025

May 8, 2025

Elm Company announces its interim consolidated financial results for the period ended 31-03-2025 (Three Months)

7203 · 08/05/2025 15:51:00 · Announcement #87112 · View on Saudi Exchange

Elm Company announces its interim consolidated financial results for the period ended 31-03-2025 (Three Months)

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	1,877	1,639	14.521	2,129	-11.836
Gross Profit (Loss)	773	624	23.878	843	-8.303
Operational Profit (Loss)	471	334	41.017	408	15.441
Net profit (Loss)	495	345	43.478	497	-0.402
Total Comprehensive Income	484	345	40.289	491	-1.425
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Total Shareholders Equity (after Deducting Minority Equity)	5,489	4,046	35.664
Profit (Loss) per Share	6.38	4.44
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	-	-
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	Revenue increased by 14.52% (SAR 238 million), the increase in revenue resulted from an increase in Digital Business revenue by 18.12%, increase in Professional Services revenue by 48.39%, increase in Business Process Outsourcing revenue by 2.51%.
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 SAR 495 million for the period ended 31 March 2025, with an increase of 43.48% (SAR 150 million) compared to the comparative quarter from prior year, as a result of the following:

Increase in revenue by 14.52% (SAR 238 million), which lead to an increase in gross profit by 23.88% (SAR 149 million).

Increase in operating expenses by 4.14% (SAR 12 million), as a result of increase in the general and administration expenses by SAR 26 million, increase in the research and development expenses by SAR 7 million, and increase in impairment of non-current assets by SAR 2 million, On the other hand, there was a decrease in expected credit losses by SAR 21 million, a decrease in depreciation and amortization expenses by SAR 1 million, and a decrease in selling and marketing expenses by SAR 1 million.

Furthermore, regarding other items impacting the net profit, other income increased by SAR 9 million, fair value gain through profit or loss increased by SAR 6 million, Offset by the increase in finance expenses by SAR 2 million, and an increase in the share of loss from associates by SAR 1 million.The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is Revenue decreased by 11.84% (SAR 252 million), The decrease in revenue resulted from a decrease in Digital Business revenue by 14.16%, a decrease in Professional Services revenue by 22.03%, and a decrease in Business Process Outsourcing revenue by 2.39%.The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is The Company achieved a net profit after Zakat of SAR 495 million for the period ended 31 March 2025, with a decrease of 0.40% (SAR 2 million) compared to the prior quarter, as a result of the following:

Decrease in gross profit by 8.30% (SAR 70 million) on the other hand there was an increase in operating profit by 15.44% (SAR 63 million) due to the decreased in operating expenses by 30.57% (SAR 133 million), as a result of decrease in the expected credit losses expenses by SAR 77 million, a decrease in general and administration expenses by SAR 14 million, a decrease selling and marketing expenses by SAR 14 million, a decrease in impairment of non-current assets by SAR 17 million, a decrease in depreciation and amortization expenses by SAR 10 million, and a decrease in research and development expenses by SAR 1 million.

Furthermore, regarding other items impacting the net profit, other income decreased by SAR 61 million, offset by a decrease in finance expenses by SAR 1 million, the increase in the Murabaha deposit by SAR 4 million, and an increase in fair value gain through profit or loss increased by SAR 1 million.Statement of the type of external auditor's report Unmodified conclusionComment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) Not applicableReclassification of Comparison Items Certain comparative figures have been redisplayed, regrouped, and reclassified to conform to the current period presentation. For more information, please refer to note 28 in the interim condensed consolidated financial statements for the period ended 31 March 2025.Additional Information Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the period ended 31 March 2025, amounted to SAR 511 million with an increase of 36.27% compared to the comparative quarter from prior year.

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