Elm Company announces its Interim Consolidated Financial results for the period ended 31-03-2026 (Three Months)

Increase in revenue by 31.70% (SAR 595 million), which lead to an increase in gross profit by 35.88% (SAR 277 million).

Operating expenses increased by 45.18% (SAR 136 million), mainly due to an increase in general and administrative expenses by SAR 64 million, an increase in depreciation and amortization expenses by SAR 39 million, an increase in expected credit loss expenses by SAR 26 million, an increase in selling and marketing expenses by SAR 11 million.

This was offset by decrease in research and development expenses by SAR 2 million and decrease in impairment of non-current assets by SAR 2 million.

In relation to the other items impacting net profit, the Company recognized non-recurring gains amounting to SAR 59 million, arising from the remeasurement at fair value of its previously held interest in an associate, as a result of completing the acquisition of a controlling interest during the period, this was offset by increase in finance costs by SAR 29 million, and the share of loss from associates and joint ventures increased by SAR 2 million, the fair value gains from revaluation of investments through profit or loss decreased by SAR 1 million, there was also a decrease of Income from Murabaha deposit by SAR 1 million and increase in Zakat expense by SAR 7 million.

This was offset by an increase in Professional Services revenue by 25.00%.

Increase in gross profit by 8.26% (SAR 80 million).

Decrease in operating expenses by 13.81% (SAR 70 million), as a result of the decrease in selling and marketing expenses by SAR 44 million, decrease in impairment of non-current assets by SAR 29 million, a decrease in research and development expenses by SAR 21 million, decrease in expected credit loss expenses by SAR 10 million.

This was offset by an increase in general, and administrative expenses by SAR 28 million, an increase in depreciation and amortization expenses by SAR 6 million.

In relation to the other items impacting net profit, the Company recognized non-recurring gains amounting to SAR 59 million, arising from the remeasurement at fair value of its previously held interest in an associate, as a result of completing the acquisition of a controlling interest during the period, an increase of Income from Murabaha deposit by SAR 10 million and increase in the fair value gains from revaluation of investments through profit or loss by SAR 1 million.

This was offset by the share of loss from associates and joint ventures increased by SAR 6 million and increase in finance costs by SAR 1.

Furthermore, the Zakat expense increased by SAR 4 million.

- During the period, the Company completed the acquisition of a controlling interest in an associate (step acquisition). The acquisition has been recognized based on the provisional fair values of the net assets acquired as at the acquisition date, in accordance with the International Financial Reporting Standards (IFRS) endorsed in the Kingdom of Saudi Arabia. For further details, please refer to Note (24) of the notes to the interim condensed consolidated financial statements for the period ended 31 March 2026.