Ramallah — Arab Palestinian Investment Company (APIC) posted a 39.43 percent drop in first half net profit to $12.34 million, from $20.38 million in H1 2022.
Chairman and CEO Tarek Aggad said APIC achieved an EBITDA of $35.4 million in the first half of 2023.
Net profits attributed to APIC shareholders in the first half of 2023 reached $11.08 million. Total revenues grew by 7.2 percent year on year and amounted to $590.8 million.
Total assets increased by 8.74 percent compared to 2022’s closing and reached $756 million, while net equity attributed to APIC shareholders increased by 7 percent compared to 2022’s closing and amounted to $186.7 million.
Aggad explained the main reasons that contributed to the decline of 2023’s first-half results compared to the same period last year, which included inflation in financing costs due to the global rise in interest rates that began in the second quarter of last year, according to WAFA.
The decline also happened due to 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.
Aggad added that APIC distributed five million in bonus shares to its shareholders, representing around 4.46 percent at par, noting that APIC’s paid-in capital became $117 million following this distribution.
APIC also distributed $10.64 million as cash dividends, representing 9.5 percent. Accordingly, the total dividend payout amounted to $15.64 million, representing around 13.96 percent of the company’s paid-in capital.
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 subsidiaries.