| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 970,519 | 966,143 | 0.452 | 1,031,323 | -5.895 |
| Gross Profit (Loss) | 169,662 | 154,605 | 9.739 | 156,341 | 8.52 |
| Operational Profit (Loss) | 79,133 | 82,573 | -4.166 | 77,557 | 2.032 |
| Net Profit (Loss) Attributable to Shareholders of the Issuer | 53,944 | 31,931 | 68.939 | 51,923 | 3.892 |
| Total Comprehensive Income Attributable to Shareholders of the Issuer | 55,070 | 31,726 | 73.58 | 50,613 | 8.806 |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 2,001,842 | 1,876,321 | 6.689 |
| Gross Profit (Loss) | 326,003 | 258,556 | 26.086 |
| Operational Profit (Loss) | 156,690 | 129,580 | 20.921 |
| Net Profit (Loss) Attributable to Shareholders of the Issuer | 105,867 | 181,043 | -41.523 |
| Total Comprehensive Income Attributable to Shareholders of the Issuer | 105,683 | 180,143 | -41.333 |
| Total Shareholders Equity (after Deducting Minority Equity) | 1,162,289 | 1,086,581 | 6.967 |
| Profit (Loss) per Share | 1.76 | 3.02 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | The increase in the company’s revenues is mainly due to an increase in the revenues from the oil and gas industry sector and the plastic sector. This increase was despite the decrease in revenue of metal, wood and electric industry sectors in the current quarter as compared to the same quarter of the previous year. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | The reason for the increase in net profit during the current quarter compared to the revised net profit of the same quarter of the previous year is mainly due to the following: - Increase in revenues and profits from the oil and gas sectors during the current quarter compared to the same quarter of the previous year, mainly due to higher sales volumes and increased project completion percentage. - The increase in revenue and net profit of the plastics industries sector is mainly due to the increase in quantities sold and better selling prices, resulting in improved gross margins. - Increase in profit from the metal sector, due to better selling prices, which resulted in improved gross profit margins as compared to the same quarter of the previous year. - Increase in profit from the wood sector, due to better selling prices, which resulted in improved gross profit margins as compared to the same quarter of the previous year. - Decrease in the finance charges. - Decrease in zakat expense. - The increase in other incomes. This increase comes despite the following: - The decrease in net profit of the electrical industries sector, mainly due to the decrease in average selling prices, resulting in a reduced gross profit margin. - The increase in operating expenses of mainly the oil & gas sector is in line with growth in operations. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | The reason for the decrease in the company’s revenues is due to the decrease in revenues in the oil & gas and wood sectors, mainly due to the decrease in the quantities sold in the aforementioned sectors. This decrease is despite the increase in revenues of the electric sector, plastic industries sector and metal sector in the current quarter as compared to the previous quarter. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | The reason for the increase in net profit during the current quarter compared to net profit of the previous quarter is mainly due to the following: - Increase in profit from the metal sector, due to an increase in quantities sold and better selling prices which resulted in improved gross profit margins. - Increase in profit from the wood sector, due to better selling prices, which resulted in improved gross profit margins. - The increase in the revenue and net profit of the plastics industries sector is mainly due to better selling prices resulting in improved gross margins. - Reduction in expenses related to the non-cash amortization of intangible assets recognized in 2025 following the purchase price allocation (PPA) for the oil and gas sector acquisition. - Decrease in zakat and income tax expense. - Decrease in finance charges. This increase comes despite the following: - Reduction in other incomes mainly on account of recognition of gain on sale of land in the plastic sector during the previous quarter. - Decrease in revenues and profits from the oil and gas sectors, mainly due to lesser sales volumes in line with the stage of completion of underlying projects. - The decrease in net profit of the electrical industries sector, mainly due to the decrease in average selling prices, resulting in a reduced gross profit margin. - The increase in operating expenses. |
| The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is | The increase in the company’s revenues is mainly due to the recognition of revenues from the oil and gas industries sector for the entire current period, compared to the recognition of revenues from the sector starting from February 13, 2025, for the same period of the previous year (the date of legal transfer of ownership), resulting in an increase in revenues from the oil and gas industries sector. Further, revenues from the plastics industries sector also increased mainly on account of an increase in quantities sold. This increase was despite the decrease in revenue of metal, wood and electric industry sectors in the current period as compared to the same period in the previous year. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | The reason for the decrease in net profit during the current period compared to the revised profit of the same period of the previous year is mainly due to the following: - One time recognition of non-cash bargain purchase gain (SR 126 million) related to acquisition of oil & Gas sector in Q1-2025 - The decrease in net profit of the electrical industries sector, mainly due to the decrease in quantities sold and average selling prices, resulting in a reduced gross profit margin. - The decrease in net profit of wood products, mainly due to the decrease in quantities sold, resulting in a reduced gross profit. - Increase in expense related to the non-cash amortization of intangible assets recognized in 2025 following the purchase price allocation (PPA) for the oil and gas sector acquisition (H1-2026: SR 72 million vs H1-2025: SR 40 million). - The increase in operating expenses is mainly due to the consolidation of operating expenses for the oil and gas industries sector for the entire current period. - The increase in zakat expenses. This decrease comes despite the following: - The recognition of revenues and profits for the oil and gas industries sector for the entire current period, compared to the recognition of revenues and net profit for the sector starting from February 13, 2025, for the same period of the previous year. Additionally, the sector's net profit increased during the current quarter compared to the same quarter of the previous year, mainly due to higher sales volumes and increased project completion percentage. - Achieving profit of SR 26 million from metal products, compared to losses of SR 0.2 million in the same period of the previous year, due to better selling prices and improved gross profit margin. - The increase in revenue and net profit of the plastics industries sector, mainly due to the increase in quantities sold and the sale of one of the sector's lands at a gain of SR 2.4 million. - The increase in other revenues is mainly on account of a gain on the sale of land in the plastic industries sector. - Decrease in finance costs. |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | None |
| Reclassification of Comparison Items | The Group acquired 80% of the oil & gas industries sector during 2025, accounted for as a business combination under IFRS 3 [the link of the announcement related to our acquisition: https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcementsdetails/?anId=85233&anCat=1&cs=1302&locale=en The purchase price allocation (PPA), initially disclosed as under process in the Q2 2025 interim financial statements, was finalized in Q4 2025 [within the 12-month measurement period permitted by IFRS 3] and was reflected in the audited consolidated financial statements for the year ended 31 December 2025, where the full impact was accounted for in Q4 2025. In line with IFRS requirements, the comparative figures for all the quarters in 2025 have been revised to reflect the normalized impact of the PPA-related non-cash accounting adjustments. Accordingly, the comparative figures for the three- and six-month periods ended 30 June 2025 have been revised to reflect the retrospective impact of finalized PPA. It is worth noting that these are measurement-period non-cash accounting adjustments under IFRS 3 and do not represent a correction of a prior-period error under IAS 8. |
| Additional Information | Net Profit: The company recorded its share of net profit of SR 106 million during H1-2026. After excluding the non-cash depreciation and amortization charge arising from the PPA amounting to SR 72 million (Bawan's share: SR 58 million), the underlying effective net profit for H1-2026 amounted to SR 164 million. Gross Profit: During H1-2026, the Group recorded SR 326 million of gross profits, representing a gross margin of 16%. Excluding the non-cash PPA amortization charge of SR 60 million absorbed at the cost of sales level, the underlying effective gross profit amounted to SR 386 million, reflecting an effective gross margin of 19%. This compares to an effective gross profit of SR 289 million (15% gross margin) for the H1-2025 and SR 193 million (19% gross margin) in Q1 2026. Operating Income: On an operating income level, the Group recorded SR 157 million during H1-2026. Adjusting for the same non-cash PPA charge of SR 72 million, the underlying effective operating income amounted to SR 229 million, compared to an effective operating income of SR 170 million during H1-2025. EBITDA: The Group achieved earnings before interest, taxes, depreciation and amortization (EBITDA) of SAR 282 million during H1-2026 as compared to EBITDA of H1-2025 amounting to SR 212 million. Geopolitical Update: Bawan is closely monitoring the geopolitical situation in the region and will continue to effectively manage its supply chain, operational and customer-related risks across its industrial segments, leveraging pricing flexibility and inventory cover where appropriate. However, given the evolving nature of the situation, the potential long-term impact on the group's business will continue to be assessed on future reporting dates. (Refer to attachment for more elaboration). |
| Attached Documents | Attached Documents |
