Arab Palestinian Investment Company (APIC) achieved net profits of USD 19.05 million in 2023
RAMALLAH, Palestine, March 18, 2024 /PRNewswire/ -- Arab Palestinian Investment Company (APIC) announced its consolidated preliminary (unaudited) financial results for 2023. In his statement, APIC Chairman and CEO Tarek Aggad announced that the company's total revenues in 2023 amounted to USD 1.21 billion, a growth of 3.85% year on year. Net profits amounted to USD 19.05 million, a decline of 37.7% year on year, while net profits attributed to APIC shareholders amounted to USD 17.6 million, a decline of 36.5%. Earnings per share amounted to USD 0.15, a decline of 39.3% year on year.
Aggad explained the main reasons for the decline in net profits in 2023 when compared to 2022, with the most prominent factor being the increase in the cost of debt by around USD 7 million in 2023 due to the inflation in the cost of financing as a result of the global rise in interest rates, in addition to provisions of USD 8 million because of the war on Gaza, of which USD 2.8 million related to losses of the group's assets in Gaza through the income statement and USD 5.3 million provisions for financial assets impairment through the other comprehensive income. Also, there was an accounting impact related to the application of International Accounting Standard No. 29 on the results of Siniora's Turkish subsidiary Polonez of about USD 3 million in 2023, since Turkey is classified as a hyperinflationary country. Furthermore, there was a major shortage of essential supplies faced by some companies within the group due to logistical problems with some global suppliers, in addition to the continuous rise in the cost of the global supply chain, especially the increase in raw material costs, and the increase in costs related to shipping, storage, energy, and insurance, as well as the sharp decline in the value of the shekel against the US dollar, where the main operational currency in Palestine is the shekel, while the main currency for purchases from outside Palestine, and the official currency for APIC's financial statements, is the US dollar. Aggad went on to add that the results of 2022 included one-time capital gains from an investment of around USD 2 million. Therefore, these factors combined led to lower profits in 2023 versus 2022.
Total assets amounted to USD 792.1 million in 2023, an increase of 6.7% over the previous year, while net equity attributed to APIC shareholders amounted to USD 183 million, a decrease of 1.6%.
Aggad added that in 2023, APIC and its subsidiaries invested USD 2.3 million in corporate social responsibility, which represented 12% of the group's net profit, of which USD 600,000 went for the relief of Gaza as urgent support to contribute to alleviating the suffering of our people and meeting their basic needs. He said that more than 70 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, and heritage, among others, benefited from APIC's financial, and in-kind support.
About APIC
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: 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 a total of around 3,150 people. For more information, visit www.apic.ps.
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