ACICO reports net profit of KD 8.3mln and operating profit of KD 3.5mln in Q2 2025
Kuwait: ACICO Group announced its financial results for the second quarter of 2025, reporting a net profit of KD 8.3 million, marking a major turnaround from the net loss of KD 2.3 million recorded during the same period in 2024. The results reflect the company's stringent cost control policy, enhanced operational efficiency, continued progress in implementing its financial restructuring plan and its operational strength that positions it as a partner of choice in key infrastructure projects in Kuwait and the region.
Commenting on the results, Chairman of the Board Mr. Emad Abdullah Al Essa stated: 'We are entering a new chapter that paves the way for strengthening our financial position in line with our solid operational track record and sector-wide achievements. We have built a strong foundation rooted in operational efficiency, prudent management and a clear commitment to sustainable growth, ensuring long-term value for our shareholders, customers and the community. With confidence, we are moving forward toward achieving financial and operational balance that reinforces ACICO's position as a leading national company aligned with Kuwait's and the region's development ambitions.'
Sales from industrial operations grew by 7.9% to KD 35.6 million. Gross profit margin improved from 17% to 18%, and selling, general and administrative expenses remained flat year on year. Despite these improvements, the company recorded an operating profit of KD 3.5 million, compared to KD 5 million in Q2 2024. This variance is primarily due to the exclusion of real estate revenues following the divestment of certain assets as part of the company's restructuring efforts, which have significantly reduced total liabilities and interest expenses from KD 8 million to KD 3.7 million.
Restructuring Enhances Financial Position
During the quarter, ACICO finalized a major debt restructuring agreement with a creditor bank for a total liability of KD 128.5 million. The agreement, which aligns with the Group's approved financial restructuring plan, resulted in a non-recurring gain of KD 3.5 million and a corresponding increase in shareholders' equity.
The agreement included a multi-phase implementation plan, comprising the transfer of a property worth KD 60 million, a partial cash repayment of KD 2 million, direct debt discounts, and the conversion of part of the debt into preferred shares.
The Group reaffirmed that this agreement is a continuation of its comprehensive financial restructuring strategy endorsed by the Board of Directors, aimed at strengthening financial efficiency, fortifying the balance sheet, and reinforcing ACICO's position as a leading regional player.
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