Elm profit rises to SAR 1.08B in H1 2025; Q2 at SAR 590M

Elm Co. reported a net profit of SAR 1.08 billion in H1 2025, a rise of 30.6% from SAR 831 million in the year-earlier period.

Higher net profit was mainly due to a 21.02% year-on-year (YoY) increase in revenue (+SAR 716 million), driven by a 22.4% hike in digital business, 16.47% in business outsourcing, and 33.85% in professional services.

Zakat expenses fell SAR 92 million as a result of a SAR 69 million reversal of prior provisions, following the Zakat, Tax, and Customs Authority’s completion of its Zakat assessment.

This was despite a 32.74% YoY rise in operating expenses (+SAR 183 million), due to higher general and admin costs (+SAR 128 million), expected credit losses (+SAR 23 million), depreciation and amortization (+SAR 13 million), marketing (+SAR 9 million), R&D (+SAR 9 million), and impairment charges (+SAR 1 million).

Financing costs also rose SAR 23 million in H1 2025, while losses from associates widened SAR 2 million. Fair value gains on investments dropped by SAR 8 million, albeit partially offset by a SAR 9 million increase in other income.

The second-quarter net profit jumped 21% to SAR 590 million, from SAR 487 million in Q2 2024.

Compared to Q1 2025, the company’s net profit grew 19% from SAR 495.73 million on higher income from digital business and outsourcing activities.

Shareholders’ equity, after minority interest, increased to SAR 3.26 billion as of June 30, 2025, from SAR 4.45 billion a year earlier.

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