Maadaniyah Lose as much as SR6.2 mln 

National Metal Manufacturing and Casting Co. (Maadaniyah) reported losses of SR6.23 million, after zakat and tax deductions, in Q3, up from SR5.86 million, in the same quarter, the previous year..

This came after the preliminary financial results for the period ending September 30, 2021 were released (9-month).

The operational loss in Q3 was SR4.32 million, up from SR3.81 million, in the same quarter the previous year, ended with a 13.38% rise.

The total profit for Q3 was SR3.57 million, down from SR3.81 million, in the same quarter the previous year, a decrease of 6.29%.

During the period, the loss per share was SR0.74, compared to 0.75 during the same time the previous year.

Despite an increase in sales, the current quarter’s losses increased due to a rise in production costs, an increase in selling and distribution expenditures, and an increase in the provision for a decline in trade receivables.

The improvement in sales, the drop in general and administrative expenses, and the decrease in provision for impairment in trade receivables are the reasons for the decrease in losses in the current quarter compared to the previous quarter.

However, sales drop in general, and administrative expenses, growth in other revenues, reduction in financial obligations and in the provision for zakat are the reasons for the decrease of losses, during the present period compared to the same time the previous year.

Certain comparison numbers have been reclassified to match the current period’s presentation.

The total losses amounted to SR60.86 million, or 21.65% of the company’s total capital of SR281.12 million. The following are the primary causes of the accumulating losses:

1. In previous years, there were impairment losses and goodwill write-offs totaling SR61.9 million.
2. During the present year and preceding years, they made provisions for doubtful debts and old and slow-moving inventories, resulting in a current balance of SR26.2 million.
3. The impact of the impending pandemic and the accompanying steps to control its spread on sales and profit margins in recent years, particularly in 2020.

On September 30, 2021, the corporation discovered that its total losses amounted to 21.65% of the capital. 

The corporation will endeavor to put mechanisms in place for companies that are publicly traded and have accrued losses of 20% or more.