Scientific & Medical Equipment House Co. announces its Interim Financial Results for the Period Ending on 30-06-2023 (Six Months)
| ELEMENT LIST | CURRENT QUARTER | SIMILAR QUARTER FOR PREVIOUS YEAR | %CHANGE | PREVIOUS QUARTER | %CHANGE |
| les/Revenue | 190.7 | 176.3 | 8.2 | 164.9 | 15.6 |
| Gross Profit (Loss) | 29.9 | 46.8 | -36.1 | 30.9 | -3.2 |
| Operational Profit (Loss) | 8.3 | 22.2 | -62.6 | 12.3 | -32.5 |
| Net Profit (Loss) after Zakat and Tax | 1.4 | 16.4 | -91.5 | 6.3 | -77.8 |
| Total Comprehensive Income | 1.4 | 16.4 | -91.5 | 6.3 | -77.8 |
All figures are in (Millions) Saudi Arabia, Riyals
| ELEMENT LIST | CURRENT PERIOD | SIMILAR QUARTER FOR PREVIOUS YEAR | %CHANGE |
| Sales/Revenue | 355.7 | 338.9 | 5.0 |
| Gross Profit (Loss) | 60.8 | 84.7 | -28.2 |
| Operational Profit (Loss) | 20.6 | 44.0 | -53.2 |
| Net Profit (Loss) after Zakat and Tax | 7.7 | 33.1 | -76.7 |
| Total Comprehensive Income | 7.7 | 33.1 | -76.7 |
| Total Share Holders Equity (after Deducting Minority Equity) | 476.4 | 486.8 | -2.1 |
| Profit (Loss) per Share | 0.44 | 1.70 | -74.1 |
All figures are in (Millions) Saudi Arabia, Riyals
The reason of the decrease in the net profit during the current quarter compared to the same quarter of the last year
Although revenues increased 8% during the current quarter compared to the same quarter of the previous year, net profit decreased due mainly to the following:
• Increasing the salaries and wages of medical Employees in the year 2023, and the incurring additional costs on discounts related to previous billings.
• Increase in projects’ costs including labor, spare parts and subcontractors.
• Increase in the provision of expected credit loss and finance costs. Also decrease in other income.
Note that several projects were won and granted to the company (announced during previous periods). Some of those projects started during the second quarter whereas the others shall commence in the remaining part of 2023 and 2024.
This is expected to make a positive impact on financial results by the end of this year 2023 onwards.
The reason of the decrease in the net profit during the current quarter compared to the previous quarter
Although revenues increased 15% during the current quarter compared to the previous quarter, net profit decreased due mainly to the following:
• General increase in the direct projects’ costs including labor, spare parts and subcontractors.
• Increase in the provision of expected credit loss and finance costs.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is
Although revenues increased 5% for the first half 2023 compared with the first half of 2022, net profit decreased due to the following:
• Recognizing revenues during the 1st half of 2022 for completed projects which led to increased profit.
• Higher profit margins were also recognized upon terminating and handing over some projects during 2022. On the other hand, new projects commenced during 2023 but still at the started-up phase where they incur substantial mobilization and startup costs.
• General increase in the direct projects’ costs including labor, spare parts and subcontractors.
• Increasing the salaries and wages of medical Employees in the year 2023, and the incurring additional costs on discounts related to previous billings.
Statement of the type of external auditor's report
Unmodified conclusion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion
None
Reclassification of Comparison Items
Comparative figures were reclassified in prior period to conform with current period.
Additional Information
None
