Bawan profit reaches SAR 86.9M in H1 2025, SAR 50.4M in Q2

Bawan Co.'s net profit rose 66% to SAR 86.9 million by the end of H1 2025 from SAR 52.3 million a year before.

Revenue grew by 24% year-on-year (YoY), mainly due to the recognition of revenue from the oil and gas industries segment, in addition to the increase in revenues in the electrical and plastic industries, as well as the wood products segments.

Gross profit margin increased from 10% to 15%, as a result of implementing the group's strategic plan to increase the percentage of the contribution of high-margin products in the group's product portfolio. New products in the electrical and plastics industries, in addition to consolidating the results of products from the oil and gas industries segment, contributed to the increase in the group's gross profit margin.

In addition, the company started the recognition of revenues and net profit from the newly acquired oil and gas industries segment, which achieved a net profit attributable to the company's shareholders of SAR 29.7 million during the current period.

However, the company posted higher operating expenses due to the consolidation of the results of the oil and gas industries segment, in addition to the growth in activities of the electrical and plastic industries segments.

Finance cost also rose due to the increase in the company's total debt related to the acquisition of the oil and gas industries segment and the consolidation of the costs of financing the working capital requirements related to the segment.

The company also cited higher Zakat expenses, and lower other income.

The company's Q2 net profit soared 118% to SAR 50.4 million, from SAR 23.12 million in Q2 2024, mainly supported by strong revenues.

Sequentially, the second-quarter net earnings leapt 38% from SAR 36.51 million in Q1 2025.

Shareholders' equity, after minority interest, amounted to SAR 1.01 billion by the end of H1 2025, from SAR 910.2 million in the prior-year period.

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