Sadr turns to losses of SR1.8 mln in 1Q

Sadr Logistics Co. announced recording losses after zakat and tax at SR 1.8 million in the first quarter of 2022 compared to profits of 601K during the same period of 2021.

This came after Sadr announcement on Thursday of the preliminary financial results for the period ending on 31.03.2022 (three months).

The company reported operational loss of SR 1.3 million in the 1^st quarter of the current year from operational profit at SR 1.03 million in the same period of the previous year.

The loss per share of Sadr fell to SR 0.1 from SR 0.24.

The net profit decreased during the current quarter compared to the same quarter of the previous year despite the increase in sales by approximately 33% during the current quarter for the following reasons:-

The cost of sales increased by 57.32% due to the increase in raw material prices and the increase in operating costs.

– Increase in selling and marketing expenses by 67.82% due to an increase in salaries, wages, and transportation and shipping expenses.

– Increase in general and administrative expenses by 58.74% due to the increase in salaries and wages of administrative cadres that were attracted to implement the company’s expansion plans.

– Increase in The Zakat provision by 142.48% to increase the capital, and the value of the Zakat provision will gradually decrease as the company progresses in implementing its expansion plans and capital spending.

– Despite the increase in investments and other income.

The net profit decreased during the current quarter compared to the previous quarter for the following reasons:-

Sales decreased by 6.93% due to the intensity of competition and market conditions.

– An increase in selling and marketing expenses by 5.34% due to an increase in salaries and wages.

– Increase in general and administrative expenses by 22.58% due to the increase in the salaries and wages of administrative cadres that were attracted to implement the company’s expansion plans.

– Increase in the Zakat provision by 85.67% to increase the capital, and the value of the Zakat provision will gradually decrease as the company progresses in implementing its expansion plans and capital spending.

– Despite the increase in investments and lower financing costs.

Additional Information:

The basic and diluted share of profit and loss for the current period and the corresponding period of the previous year was calculated by dividing the net profit or loss for each period after zakat attributable to the company’s shareholders by the weighted average number of ordinary shares outstanding at the end of each period, where the weighted average shares for the current period 17,500,000 shares compared to 2,500,000 shares for the same period of the previous year.