Arab Palestinian Investment Company achieved USD 9mln in net profits attributed to its shareholders in 2024
RAMALLAH, Palestine/PRNewswire/ -- Arab Palestinian Investment Company announced its consolidated preliminary (unaudited) financial results for 2024. In his statement, Chairman and CEO of the company Tarek Aggad announced that the company's total revenues in 2024 reached USD 1.12 billion, a decline of 6% when compared with 2023. EBITDA amounted to USD 68.4 million, a decline of 6%. The group's net profits amounted to USD 8 million, a decline of 57%, while net profits attributed to the company's shareholders amounted to USD 9 million, a decline of 49%. Earnings per share amounted to USD 0.073, a decline of 49% year on year.
Total assets in 2024 amounted to USD 842 million, an increase of 5.5% over the previous year, while net equity attributed to the company's shareholders amounted to USD 189 million, an increase of 2.4%.
Aggad stated that 2024 was an extremely difficult year filled with challenges. However, the company managed to achieve acceptable profits for its shareholders. He outlined the reasons behind the decline in the company's profits in 2024 compared to 2023, with the most significant being the repercussions of the war on Gaza and the sharp decline in commercial activity due to restrictions imposed by the occupation. These included city closures in the West Bank and limitations on the movement of people and goods to and from Palestine. Additionally, there were significant delays in clearing equipment and goods, leading to increased clearance and storage costs. Furthermore, the economic situation is dire, worsened by the occupation's withholding of funds from the Palestinian Authority (PNA), which has crippled the Palestinian government's ability to pay its employees in full and fulfill its financial obligations, particularly to the private sector.
He added that the Palestinian Authority's direct and indirect debt to subsidiaries of the group reached around USD 107 million by the end of 2024, a significant portion of this debt is owed to Medical Supplies and Services Company (MSS). He went on to add that the delays in government tenders, particularly within the medical sector, severely impacted the revenue of MSS, especially in fulfilling tenders intended for Gaza. Moreover, the construction sector witnessed a steep decline, with a reduction rate of 60% in 2024, which severely affected the results of National Aluminum and Profiles Company (NAPCO). The demand on vehicles in Palestine also saw a dramatic decrease of around 60% in 2024, significantly impacting the sales of the Palestine Automobile Company. The purchasing power of Palestinian consumers has also plummeted, with many turning to cheaper alternatives due to the sharp drop in income. The demand on imported goods in Palestine and Jordan has declined due to the boycott of numerous of foreign goods, which affected the sales of Unipal General Trading Company. The widespread economic downturn also led to a substantial reduction in spending on promotional campaigns, advertising, and public relations by most Palestinian companies, which in turn severely affected the revenues of Sky Advertising and Promotion Company and its subsidiary, Oyoun Media. Furthermore, there was a major shortage of essential supplies faced by some subsidiaries 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 the cost of raw materials, shipping, storage, energy, and insurance. Therefore, these factors have all negatively impacted the operational performance of subsidiaries.
Aggad added that the group witnessed an increase in the financing costs of around USD 4 million in 2024, due to the continued global rise in interest rates. 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 around USD 5 million in 2024, since Turkey is classified as a hyperinflationary country. All these reasons combined led to lower profits in 2024 versus 2023.
Aggad emphasized that the company remains committed to its pioneering role in the communities within which it operates. In 2024, it allocated around USD 1.6 million to social responsibility, supporting numerous associations and institutions dedicated to orphans, individuals with special needs, mental health, healthcare, education, and youth, among others.
APIC is a public shareholding investment 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 group of subsidiaries: Siniora Food Industries Company; Unipal General Trading Company; Palestine Automobile Company; Medical Supplies and Services Company; National Aluminum and Profiles Company (NAPCO); Reema Hygienic Paper Company; Sky Advertising and Promotion Company; Arab Leasing Company and Arab Palestinian Storage and Cooling Company, employing over 3200 staff through its group of subsidiaries. For more information, visit https://apic.ps/.
SOURCE Arab Palestinian Investment Company (APIC)
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