East Pipes reports increase in revenue in 1Q-FY23
- Date: 28-Jul-2022
- Source: Zawya
- Sector:Technology
- Country:Saudi Arabia
East Pipes reports increase in revenue in 1Q-FY23
Increase in sales volumes and average sales prices along with decline in unit cost of raw materials, leading to YoY expansion of gross margin
Sustained focus on operational efficiencies and advanced production techniques boosts operating profit
Long-standing and solid relationships with suppliers enable successful mitigation of global supply chain disruptions
Strong pipeline of projects expected this year, with an increasing emphasis on the water sector
Dammam, Saudi Arabia: East Pipes Integrated Company for Industry (“East Pipes” or “the Company”, 1321 on the Saudi Exchange), Saudi Arabia’s leading manufacturer of Helical Submerged Arc Welded (HSAW) pipes, today announced its financial results for the first quarter ended 30 June 2022 (“1Q-FY23”) reporting an improvement in revenue, essentially due to a rebound in market activity and a continued tactical focus on operational efficiencies.
Financial highlights for 1Q-FY23
Revenues of SAR 206 million increased 6% QoQ and 38% YoY (4Q-FY22: SAR 194 million; 1Q-FY22: SAR 149 million), as several key projects that had been postponed by major clients previously, due to COVID-19, have now largely come back on track.
Gross profit of SAR 19 million increased 66% YoY (1Q-FY22: SAR 11 million) primarily due to a large pickup in sales volumes (+70% YoY), combined with a 14% YoY decline in the