On 2026-07-30 16:13:03 (Saudi Time), Elm Company announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ended 30 June 2026, sales/revenue grew 21.23% YoY to SAR 4,997 million (from SAR 4,122 million), driven by broad-based growth across all segments — Digital Business revenue up 22.31%, Business Process Outsourcing up 18.82%, and Professional Services up 13.79%. Net profit attributable to shareholders rose 7.74% YoY to SAR 1,169 million (from SAR 1,085 million), supported by a 23.09% increase in gross profit (SAR 390 million) and SAR 59 million in non-recurring fair value gains from remeasurement of a previously held associate interest, as well as higher income from Murabaha deposits and increased share in results from associates and joint ventures. However, these gains were substantially offset by a 33.66% surge in operating expenses (SAR 237 million), driven by higher general and administrative, depreciation and amortization, selling and marketing, and expected credit loss expenses, along with a SAR 32 million increase in finance costs and a swing in zakat from a SAR 21 million positive impact in the prior period to a SAR 74 million expense in the current period.

Quarter-on-Quarter Performance Drivers

QoQ revenue rose 2.14% to SAR 2,525 million, driven by a 5.20% increase in Digital Business revenue, partially offset by declines in Business Process Outsourcing (down 2.64%) and Professional Services (down 36.67%). Despite the revenue uptick, net profit fell 21.80% QoQ to SAR 513 million, primarily due to the absence of a non-recurring SAR 59 million fair value gain on a previously held equity interest recognized in the prior quarter, combined with a 15.33% (SAR 67 million) rise in operating expenses driven by higher selling & marketing (up SAR 26 million), general & administrative (up SAR 21 million), and expected credit loss expenses (up SAR 14 million). Additionally, gross profit declined 1.81% (SAR 19 million) QoQ, and Murabaha deposit income fell by SAR 10 million, further pressuring the bottom line, though partially offset by higher associate/JV income (up SAR 7 million) and lower finance costs (down SAR 4 million).

Other Items

The external auditor issued an unmodified conclusion on Elm Company's interim condensed consolidated financial statements for the six months ended 30 June 2026, with no additional comments, reservations, or qualifications noted. No accumulated losses were reported. EBITDA for the period amounted to SAR 1,303 million, representing an increase of 19.65% compared to the same period of the prior year. Certain comparative figures have been reclassified and restated to conform to the current period's presentation, with further details available in note 23 of the interim condensed consolidated financial statements.

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