SABIC Agri-Nutrients profits jump 92% to SAR 10.03 billion at the end of 2022

The net profit after zakat and tax for SABIC Agri-Nutrients Co. jumped during the year 2022 to SAR 10.03 billion, compared to SAR 5.22 billion in the previous year, by 92%. This came after today’s announcement of the annual financial results ending on 12-31-2022.

The operating profit amounted to SAR 10.33 billion during the year ending on December 31, 2022, compared to SAR 5.75 billion in the previous year, a growth of 80%.

As for the total profit, it amounted to SAR 11.18 billion in the current year, compared to SAR 6.5 billion in the previous year, an increase of 72%.

Earnings per share in the current year amounted to SAR 21.08, compared to SAR 10.98 in the previous year.

The reasons for the increase in net profit for the current year compared with the last year:

• Increase in average selling prices of the company’s products.

• Increase in quantities sold of company products.

Despite the increase in net profit, it has been limited by:

• increase in general and administrative expenses, selling and distribution expenses, and Zakat provision due to an increase in the sales revenue.

Additional Information:

On 1st of Jan 2022, SABIC Agri Nuitrent became the marketer to sell its own products and Agri Nutrients products for the subsidiaries companies, which impacted the company’s financial performance by having higher revenue and higher logistic cost which SABIC was our Marketer before.

With reference to IAS 32 and IFRS 10, and the JV Agreement between SABIC and Taiwan Fertilizer Company (TFC) signed for the establishment and joint ownership of Al-Bayroni in 1979 that ends at the end of 2032 and as SABIC Agri-Nutrient Investment Company (SANIC) is the current existing partner in Al Bayron along with TFC, and reference to the Novation of the Joint Venture Agreement between SABIC, SANIC and TFC, SANIC has recognised the acquisition option of TFC share in Al Bayroni at the termination of the JV Agreement, which resulted in recording a liability as part of non-current liabilities and adjustment to retained earning with the amount of SAR 2.4 Billion.

The company said that some reclassifications have been carried out to reclassify some costs from sales and distribution to the cost of goods sold, explaining that the net comprehensive income is attributed to the parent company.