In announcing its consolidated preliminary (unaudited) financial results for 2022, Arab Palestinian Investment Company (APIC) Chairman and CEO Tarek Aggad said the company’s total revenues in 2022 amounted to $1.16 billion, a growth of 4.8% year on year.
Net profits amounted to $30.5 million, a decline of 19.6% year on year, while net profits attributed to APIC shareholders amounted to $27.6 million, a decline of 17.8%. Earnings per share amounted to $0.25, a decline of 22.9% year on year.
Aggad stated that this decline in the group’s results was caused by a number of different reasons, including the fact that 2021’s results included one-time non-operational profits of $4.67 million resulting from the sale of APIC’s entire stake in Arab Palestinian Shopping Centers Company (Bravo), in addition to regional and global economic challenges, which included a significant increase in supply chain costs worldwide involving the price of raw materials, production, shipping, transportation, and storages due to the war in Ukraine.
There has also been a rise in the group’s financing costs by 62%, partly due to inflation and the hike in global interest rates, and the increase in the cost of financing associated with expansions and working capital.
Additionally, the company has been impacted by the presentation of the results of Siniora’s Turkish subsidiary Polonez due to the application of the International Accounting Standard No. 29 because of Turkey’s classification as a hyperinflation country.
Total assets amounted to $741.5 million, an increase of 19.98% over last year. Net equity attributed to APIC shareholders amounted to $184.9 million, an increase of 13.3% over last year.
Aggad added that in 2022, APIC and its subsidiaries invested $2 million in corporate social responsibility, which represented 6.5% of the group’s net profit by providing financial, moral, and in-kind support for more than 85 charitable and humanitarian institutions that work with orphans and people with special needs, in addition to institutions in the fields of education, youth, leadership and entrepreneurship, health and medical care, culture, heritage, among others.
Source: Palestine News and Information and Agency