Naseej Lose SR11.6 mln, in Q3

Naseej International Trading Company lost SR11.58 million after zakat and tax in Q compared to SR38.75 million, in the same quarter the previous year, at a 70% decrease.

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

During Q3, the operational loss was as much as SR9 million, compared to SR33.9 million, in the same quarter the previous year, a decrease of 73.47%

Total earnings in Q3 were SR1.74 million, down 3.5% from the previous quarter’s SR1.8 million.

The last period’s net loss after zakat and tax was SR21.87 million, compared to a loss of SR75.6 million, in the previous year’s comparable period, a 71% decline.

Last period’s loss per share was SR3.55, compared to 4.89 riyals in the prior year’s period.

The decrease in net loss in the last quarter compared to the same quarter the previous year, was attributable to lower expenses and lower asset values.

While the reason for the increase in net losses in the last quarter, when compared to the previous quarter was lower sales and higher cost of sales, resulting in a lower profitmargin.

On the other hand, the reason for the decrease in net loss in the last period compared to the same period the previous year, was an increase in sales, a decrease in expenses, and a similar slupm in the value of assets.

But the increase in net loss in the previous year was due to an increase in sales, a decrease in expenses, and a decrease in the value of assets.

Naseej company explained that the last period’s loss was based on the number of shares that were 6.163 million, whereas the previous year’s loss was based on the predicted average number of shares at 6.163 million (15,455 million shares).

However, the capital was increased on agreement with the general assembly of shareholders on January 22, 2020.

Naseej stated that as of September 30, 2021, it has accrued losses of SR28.072 million, or 45.55% of its capital.

The main reasons for these losses are decreased sales, which led to an increase in the cost of production and a decrease in the profit margin, and the company has taken steps to mitigate these losses by issuing rights’ issues worth SR150 million Saudi, while the Capital Market Authority’s procedures and instructions shall be followed.

As set forth for companies with accumulated losses of 20% or more of their capital, provided that their shares are publicly traded.