Saudi Advanced Industries Co. reports 48.49% growth in net profit in 2023

RIYADH:  Saudi Advanced Industries Co. (SAIC) has released its annual financial results for the year ended December 31, 2023, showcasing a significant surge in profitability and revenue. The company’s sales/revenue climbed by 55.23% to SAR 180.15 million, up from SAR 116.05 million the previous year.

This remarkable growth is also reflected in the gross profit, which matched the sales figures, indicating a robust year for SAIC.

Operational profit saw an increase of 57.95%, reaching SAR 162.23 million, while net profit rose by 48.49% to SAR 148.8 million. The total comprehensive income experienced an unprecedented jump of 3,126.87%, amounting to SAR 154.89 million. Shareholders’ equity also grew by 10.46%, totaling SAR 995.41 million after deducting minority equity.

The earnings per share (EPS) increased from SAR 1.7 to SAR 2.52, adjusted for the company’s purchase of 1 million treasury shares following the extraordinary general assembly’s approval on January 25, 2023.

SAIC attributes the revenue boost to several factors, including increased profits from the sale of shares in associated companies, higher profits from selling financial assets at fair value through profit or loss, and a rise in unrealized gains from financial assets. Additionally, the company benefited from an increase in dividends and other income.

However, the financial year was not without its challenges. SAIC faced a 71.37% decrease in the share of associate companies’ profits and incurred a loss of SAR 36.95 million from the sale of its stake in Al Salam Aerospace Company in Q4. The exit from Al Salam also led to a write-off of the entire book value and an additional provision, resulting in a recorded loss of SAR 36.95 million for the quarter.

Despite these setbacks, SAIC made strategic changes to its investment portfolio, seizing new investment opportunities that yielded an estimated profit of SAR 71.6 million for the year. These moves were aimed at compensating for the reduced profits from associate companies.

SAIC’s financial performance in 2023 stands as a testament to its resilience and strategic acumen, positioning the company for continued success in the coming years.

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