Bawan profit reaches SAR 181M in H1 2025, SAR 31.9M in Q2

Bawan Co.’s H1 2025 net profit more than tripled to SAR 181 million 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 jumped 38% to SAR 31.9 million, from SAR 23.12 million in Q2 2024, mainly supported by strong revenues.

Sequentially, Q2 net earnings dropped 78.6% from SAR 149.11 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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