SRMG realizes 151.52 percent growth in 2nd quarter profits

The Saudi Research and Marketing Group (SRMG) said its operational profits in the second quarter of this year increased by 151.52 percent compared to the first quarter of 2013.
The group’s operational profits amounted to SR49.8 million in the second quarter compared to SR19.8 million in the first quarter. The amount is 55.14 percent more the profit (SR32.1 million) it gained during the same period last year.
The group attributed the increase in profits to rising revenues from advertising and packaging sectors. It also pointed out that the loss of SR20.5 million in the first quarter was due non-recurring extraordinary expenses.
The group's operational profit for the first half of 2013 was SR69.5 million compared to SR39.3 million for the same period in 2012, registering a growth of 76.84 percent, an official statement said.
Gross profits for the first half of this year was SR230.4 million compared to SR164.2 million for the same period in 2012. On the other hand net profit for 2013 was around SR12.2 million compared to SR30.7 million in the same period of 2012.
However, the group’s profits went up again in the second quarter of 2013 to SR30 million as compared to SR24.8 million for the same period in 2012. The group’s losses from the previous quarter had amounted to SR17.8 million, it pointed out.
On the Tadawal website, Thursday, the SRMG stated the reason for the high profits in the second quarter of 2013 compared to the same period in 2012 was the addition of profits from Emirates National Factory for Plastic Industries, which the group took over in the second half 2012. The cost reduction program was another major reason for increase in profits.
The group’s revenues grew by 59.2 percent in the first half of 2013 compared to the same period in the previous year, the statement said, adding that it was mainly because of profits from the Emirates factory, which also helped in raising the group’s operational profits by 76.8 percent.
Meanwhile, profit per share increased to SR 0.87 compared SR 0.49 for the same period last year. “The reason for the fall in net profits during the second quarter compared to the previous one was exceptional expenditures worth SR20.5 million,” it said, adding that the amount was spent for restructuring some of the group’s sectors.