2100 · 20/07/2025 16:18:17 · Announcement #88862 · View on Saudi Exchange

Wafrah for Industry and Development Co. announces its Interim Financial results for the Period Ending on 2025-06-30 ( Six Months )

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 12,439,35631,762,215-60.83557,493,427-78.363
Gross Profit (Loss) -2,532,0129,310,867-16,476,295-
Operational Profit (Loss) -17,858,876-998,4601,688.6424,742,496-
Net profit (Loss) -15,472,1256,094,819-4,473,830-
Total Comprehensive Income -15,500,4026,091,128-4,478,215-
All figures are in (Actual) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Sales/Revenue 69,932,78385,867,906-18.557
Gross Profit (Loss) 13,944,28331,189,910-55.292
Operational Profit (Loss) -13,116,3808,686,560-
Net profit (Loss) -10,998,29516,737,895-
Total Comprehensive Income -11,022,18716,731,041-
Total Shareholders Equity (after Deducting Minority Equity) 227,959,544249,199,945-8.523
Profit (Loss) per Share -0.480.72
All figures are in (Actual) Saudi Arabia, Riyals
Element ListAmountPercentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value --
All figures are in (Actual) Saudi Arabia, Riyals
Element ListExplanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is The decline in sales for the current quarter of 2025 by 61% compared to the same quarter of 2024 is attributed to the restructuring of the sales management and adjustments to the sales and credit policies granted to customers to enhance the company's financial efficiency in the upcoming phase, in addition to the current quarter lacking most of the consumer seasons compared to the same quarter of 2024. Furthermore, the abundance of raw potato crops in agricultural lands and the increase in external imports of frozen potato products, along with the entry of new competitors, have led to a decrease in the prices and quantities of the company's sales of frozen potato products compared to the same quarter of 2024. These factors collectively resulted in a 56% decrease in the sales of the vegetables factory, an 82% decrease in the pasta factory, and a 40% decrease in the meat factory compared to the same quarter of 2024.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is The reason for realizing a net loss for the current quarter of 2025 compared to a net profit in the same quarter of 2024 is due to a 61% decline in the company's sales while bearing the fixed costs for that period, as well as an increase in fuel costs at the beginning of 2025 by 44%, which led to an increase in production and shipping costs. Additionally, there was an increase in selling and marketing expenses due to higher marketing discounts granted to customers, especially in the hypermarket sector, and the restructuring of the sales management. Furthermore, the company incurred losses from investments in vital assets during that period as a result of weather conditions in the Tabuk region, and it realized one-time gains from the re-evaluation of investments in the same quarter of 2024, in addition to a decrease in other income by 86%, despite a decrease in credit loss provisions and zakat expenses compared to the same period in 2024.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is The decline in sales for the current quarter of 2025 by 78% compared to the previous quarter of 2025 is attributed to the restructuring of the sales management and the adjustment of sales and credit policies granted to customers to enhance the company's financial efficiency in the upcoming phase, in addition to the current quarter lacking consumer seasons compared to the previous quarter of 2025. The accumulation of inventory among many of the company's customers, the increase in foreign imports of potato products, and the entry of new competitors in pasta and potato products have also led to weaker demand compared to the previous quarter of 2025. These combined factors led to a decrease in sales of the pasta factory by 89%, the vegetable factory by 72%, the meat factory by 87%, and the breakfast cereals factory by 18% compared to the previous quarter of 2025.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is The reason for the company achieving a net loss for the current quarter of 2025 compared to achieving a net profit in the previous quarter of 2025 is attributed to a 78% decline in the company's sales, while incurring fixed costs during that period, an increase in the cost of purchasing raw materials at the meat factory, and the cost of storing raw materials at the vegetable factory. Additionally, selling and marketing expenses increased by 34% due to a restructuring of the sales sector, administrative expenses rose by 15%, and the provision for expected credit losses increased, despite a decrease in the provision for the decline in other receivables, an increase in the profits from the company's investments, a decrease in the company's losses from investment in vital assets, and a decrease in zakat expenses compared to the previous period of 2025.
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is The reason for the decline in sales for the current period of 2025 by 19% compared to the same period in 2024 is attributed to the restructuring of the sales management and the adjustment of sales and credit policies granted to customers to enhance the company's financial efficiency in the upcoming phase. Additionally, the seasonal increase in the raw potato crop and the rise in foreign imports of potato stick products have led to a decrease in the prices and sales quantities of the company's potato stick products, along with the entry of new competitors in pasta products compared to the same period, which resulted in a decline in the quantities sold of pasta products. These factors combined have led to a decrease in sales from the pasta factory by 26%, from the vegetable factory by 30%, and from the breakfast cereals factory by 4%, despite an increase in sales from the meat factory by 106% compared to the same period in 2024.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is The reason for the company achieving a net loss for the current period of 2025 AD compared to achieving a net profit in the same period of 2024 AD is due to a decrease in the company’s sales by 19% compared to the same period, with the company bearing the fixed costs for that period and the cost of storing raw materials in the vegetable factory with a decrease in selling prices, which led to a decrease in the profit margin of vegetable factory products, in addition to the increase in the cost of purchasing raw materials in the meat factory and the promotional offering at relatively low prices for meat factory products, with an increase in sales quantities during that period compared to the same period, which led to a total negative impact on the company’s total profit, as well as an increase in selling and marketing expenses by 52% as a result of restructuring the sales sector and expanding sales in the hypermarket sector, which led to an increase in advertising expenses and cash discounts, as well as an increase in administrative expenses by 13%, in addition to the company achieving losses from investing in vital assets during that period amounting to 2.3 million, a decrease in the company’s profits from evaluating investments in other companies by 36%, and a decrease in the other revenue item by 78% despite From a 77% decrease in expected credit loss expense and a 55% decrease in zakat expense compared to the previous period in 2024.
Statement of the type of external auditor's report Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) N/A
Reclassification of Comparison Items N/A
Additional Information -

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