Chairman and CEO of Arab Palestinian Investment Company (APIC) Tarek Aggad announced today that the group achieved net profits of $5.1 million in the first quarter of 2023, a decline of 54.2% compared to the same period of last year.
He added that total revenues amounted to $293.4 million, a growth of 4.2% year on year, while net profits attributed to APIC shareholders amounted to around $4.4 million, a decline of 55.5% year on year.
Aggad explained that the main reasons that contributed to the decline of 2023's first-quarter results compared to the same period last year include inflation in financing costs due to the global rise in interest rates that began in the second quarter of last year, the continued increase in interest rate indices up to the present day, in addition to the shortage of essential supplies faced by some companies within the group due to logistical problems with some global suppliers, especially in the pharmaceutical and medical supplies distributed by APIC subsidiary Medical Supplies and Services Company.
Additionally, there was an accounting impact related to the application of International Accounting Standard No. 29 on the results of Siniora's Turkish subsidiary Polonez since Turkey was classified as a hyperinflationary country.
It is worth noting that the first-quarter results of last year included one-time capital gains from an investment, as well as the exceptional results achieved by Siniora, a subsidiary of APIC. Therefore, these factors combined led to lower results in the first quarter of 2023 when compared to the same period in 2022.
Aggad went on to affirm the company's solid financial position and its good results despite the many challenges, noting that operating profits amounted to $13.4 million, while EBITDA amounted to $16.8 million in the first quarter of 2023. He also expressed confidence in the performance of the group's companies and their ability to achieve good results that meet the expectations of shareholders this year.
Total assets reached $731 million, a slight decrease of %1.6 over 2022's closing, while net equity attributed to APIC shareholders increased by 4.4% and amounted to $194 million by the first quarter of 2023.
APIC is a foreign public shareholding investment holding company listed on the Palestine Exchange (PEX: APIC). It holds diversified investments across the manufacturing, trade, distribution and service sectors in Palestine, Jordan, Saudi Arabia, the United Arab Emirates, Iraq and Turkey through its group of subsidiaries: Siniora Food Industries Company; Unipal General Trading Company; Palestine Automobile Company; Medical Supplies and Services Company; National Aluminum and Profiles Company (NAPCO); Sky Advertising and Public Relations and Event Management Company; Arab Leasing Company and Arab Palestinian Storage and Cooling Company, employing over 3,000 staff through its group of subsidiaries.
Source: Palestine News & Information Agency