Development Works Food profits down 35% to SR503K in Q3‎

The Development Works Food Co. revealed that the net profit after zakat and tax in the third quarter decreased to 502.9 thousand riyals, compared to 778.1 thousand riyals in the same quarter of last year, at a rate of 35.3%. This came after the announcement today of the preliminary financial results for the period ending on September 30 2022 (nine months).

The operational loss amounted to 252.4 thousand riyals in the third quarter, compared to 283.9 thousand riyals in the same quarter of the previous year.

The net profit after zakat and tax in the 9-month period amounted to 1.5 million riyals, compared to 3.8 million riyals in the same period last year, a decrease of 60.6%.

The total shareholders’ equity “without minority rights” amounted to 33.7 million riyals in the current period, compared to 32.5 million riyals in the same period last year, a growth of 3.6%.

Earnings per share in the current period amounted to 0.4 riyals, compared to 1.14 riyals in the same period last year.

The reason for the decrease in the net profit for the current quarter compared to the net profit for the same quarter of the previous year is due to the increase in the cost of sales, which is mainly due to the increase in the costs of basic materials and packaging, which affected the profit margins, in addition to the increase in wages (localization of professions) despite the increase in sales and other income.

The reason for the decrease in the net profit for the current quarter compared to the net profit for the previous quarter is due to the decrease in sales despite the increase in other revenues and the decrease in general and administrative expenses.

The reason for the decrease in the net profit for the current period compared to the net profit for the same period of the previous year is due to the increase in the cost of sales, which is mainly due to the increase in the costs of raw materials and packaging, which affected the profit margins despite the increase in sales and other revenues and the decrease in general and administrative expenses.