SIDC losses jump 176% to SR4.8 mln in 1Q

Saudi Industrial Development Co. (SIDC) announced that its losses after zakat and tax surged 176% to SR 4.8 million in the first quarter of 2022 compared to 1.7 million during the same period of 2021.

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

The company’s operational loss rose 164% to SR 6 million in the 1st quarter of the current year from SR 2.2 million in the same period of the previous year.

Gross profit of SIDC declined 23% to SR 6 million in the first quarter of this year from SR 8 million a year ago, while the loss per share soared to SR 0.12 from SR 0.04.

The reason for the increase in the net losses of the company during the first quarter of 2022 compared to the first quarter of the previous year 2021 is due to the increase in operating expenses, Increase in production cost, and the decrease in sales.

The reason for the decrease in the net losses of the company during the first quarter of 2022 compared to 4th, quarter of the previous year 2021 is due to the decrease in operating losses due to the decrease in operating expenses and increase in sales.

The Group’s interim condensed consolidated financial statement includes the financial statement of the Subsidiary company, Arabian Spring and Foam Mattresses Manufacturing Ltd. (Sleep High Egypt) (“The Subsidiary”) for the year ended December 31, 2021. The total property, plant and equipment of the subsidiary amounted to 7,806,147 Saudi riyal, inventory of the Subsidiary amounted to 10,598,393 Saudi riyal and other receivables of the Subsidiary amounted to 3,429,739 Saudi riyal which represents in total 7.3% of the Group consolidated assets as at 31 December 2021. The total liabilities of the Subsidiary amounted to 5,390,672 Saudi riyal which represent 6% of the Group consolidated liabilities as at 31 December 2021, the total revenue of the Subsidiary amounted to 34,264,054 Saudi riyal which represent 21% of Group consolidated revenue as at 31 December 2021 and the total cost of sales of the Subsidiary amounted to 26,840,500 Saudi riyal which represent 19.7% from Group consolidated cost of sales as at 31 December 2021.

We have been unable to obtain appropriate audit evidence in the relation to the Subsidiary’s carrying values and business results as at 31 December 2021 and the Parent company’s share of results of the Subsidiary for the year then ended as we have not been allowed to verify the financial information from the Subsidiary’s auditors including their audit records, accordingly we were unable to determine whether adjustments were necessary to these balances, and its impact on the balances in the current period ended 31 March 2022.