Elm’s profits decreased by 13% to 513 million riyals in the second quarter of 2026

Elm Company’s profits in the second quarter of 2026 decreased by 13% to 513 million riyals, compared to 590 million riyals in the same quarter of last year.
According to the company’s statement on the Saudi Tadawul website, the decrease in net profit was the result of the following:
Revenues increased by 12.47% (280 million riyals), which contributed to an increase in total profit by 12.32% (113 million riyals).
Operating expenses increased by 24.75% (100 million riyals), as a result of an increase in selling and marketing expenses by 38 million riyals.
The increase in general and administrative expenses amounted to 36 million riyals, the increase in depreciation and amortization expense amounted to 22 million riyals, and the increase in expected credit loss expense by 7 million riyals.
This was offset by a decrease in research and development expenses of 3 million riyals.
Regarding other items that affected net profit, the share of results from associates and joint ventures increased by 5 million riyals, and returns on Murabaha deposits increased by 4 million riyals.
This was offset by an increase in financing expenses by 3 million riyals, gains from revaluing investments at fair value through profit or loss decreased by 4 million riyals, and other income decreased by 6 million riyals.
In addition, a zakat expense of 35 million riyals was recorded during the current quarter, while the same quarter of the previous year included a positive impact of 53 million riyals resulting from the reversal of previously made provisions.
The company achieved a net profit after zakat amounting to 513 million riyals for the period ending on June 30, 2026, a decrease on a quarterly basis, of 21.80% (143 million riyals) compared to the previous quarter. This is as a result of the following:
Revenues increased by 2.14% (SAR 53 million), while gross profit decreased by 1.81% (SAR 19 million).
In addition, operating expenses increased by 15.33% (67 million riyals), as a result of the increase in selling and marketing expenses by 26 million riyals, the increase in general and administrative expenses by 21 million riyals, the increase in expected credit loss expense by 14 million riyals, and the increase in depreciation and amortization expense by 7 million riyals.
This was offset by a decrease in research and development expenses of 1 million riyals.
Regarding other items that affected net profit, the revaluation gain on the previously held ownership interest in an associate at fair value decreased by SAR 59 million, as it is considered a non-recurring gain recognized during the previous quarter, and Murabaha deposit returns decreased by SAR 10 million,
Gains from revaluation of investments at fair value through profit or loss decreased by 5 million riyals.
This was offset by an increase in the share of the results of associate companies and joint projects by 7 million riyals, other income increased by 1 million riyals, and financing expenses decreased by 4 million riyals.
In addition, zakat expense decreased by 4 million riyals.
The company achieved a net profit after zakat amounting to 1,169 million riyals for the period ending on June 30, 2026 AD, an increase of 7.74% (84 million riyals) during the first half compared to the similar period of the previous year. This is as a result of the following:
Revenues increased by 21.23% (875 million riyals), which contributed to an increase in total profit by 23.09% (390 million riyals).
Operating expenses increased by 33.66% (237 million riyals), as a result of the increase in general and administrative expenses by 100 million riyals, the increase in depreciation and amortization expenses by 61 million riyals, the increase in selling and marketing expenses by 49 million riyals, and the increase in expected credit loss expense by 34 million riyals.
This was offset by a decrease in research and development expenses by 5 million riyals, and a decrease in impairment charge for non-current assets by 2 million riyals.
With regard to other items that affected net profit, non-recurring gains were recognized in the amount of 59 million riyals resulting from the revaluation of the ownership interest previously held in an associate at fair value, following the completion of the acquisition of a controlling interest during the period. Gains in the share from the results of associates and joint ventures increased by 4 million riyals, and returns on Murabaha deposits increased by 3 million riyals.
This was offset by an increase in financing expenses by 32 million riyals, gains from revaluing investments at fair value through profit or loss decreased by 6 million riyals, and other income decreased by 5 million riyals.
In addition, a zakat expense of 74 million riyals was recorded during the current quarter, while the similar period of the previous year included a positive impact of 21 million riyals resulting from the reversal of previously made provisions.