1.Revenue increased by 25.2% due to increased demand of its products, new product launches; and the price adjustment for some of its key products

2.Selling and distribution expenses increased marginally by 1.1% vs 2Q 2022, despite the higher increase in revenue, this mitigation in the increase is mainly resulting from modification of commercial terms of a key distributor’s agreement in the later part of last year.

3.Finance charges reduced by 97.3% vs 2Q 2022 as the financial charges of 2Q 2022 includes a currency devaluation loss on the inter-company loan provided to the Company’s fully owned subsidiary in Egypt. In 4Q 2022, this loan was converted to a sub-ordinated perpetual equity instrument, therefore any currency devaluation beyond 4Q-2022 will not impact the Company’s Net Profit with regards to this arrangement with the subsidiary.

1.Revenue increase of 24.5% due to greater demand for its products, the launch of new products and the price increases obtained for some of its key products toward the end of Q1 2023.

2.Selling and distribution expenses increases only by 10.7%, despite the higher increase in revenue, this mitigation in the increase mainly resulting from modification of commercial terms of a key distributor’s agreement in the later part of last year.

3.Finance Costs reduced by 97.3% during 1H 2023 as finance costs for 1H 2022 included the currency devaluation loss on the inter-company loan granted to the Company’s fully owned subsidiary in Egypt. In 4Q 2022, this loan was converted to a sub-ordinated perpetual equity instrument, therefore any currency devaluation beyond 4Q 2022 will not impact the Company’s Net Profit with regards to this arrangement with the subsidiary.

The Company’s financial position continued to be strong with zero debt. As of 30 June 2023, the Company had a cash balance of SAR 170.3 million, which represented an increase of 70.9% compared to the balance at 1H 2022. Significant changes in the Statement of Financial Position as at 30 June 2023 from 31 December 2022 were noted as follows:

1. Non-current assets decreased slightly by 2.7% driven mainly by the decrease in property, plant and equipment.

2. Current assets increased by 33.8% mainly due to an increase in trade receivables and inventories.

3. Current liabilities increased by 54.5% mainly due to an increase in trade payables and other current liabilities.

4. Non-current liabilities increased by 8.6% mainly due to an increase in provision for employee benefits.

5. Shareholders' equity increased by 11.4% driven by the increase in retained earnings partially offset by decrease in the foreign currency reserve.