Wafrah profits increase by 67.6% during Q3 to SAR 5 million

Wafrah for Industry and Development Co. announced an increase in net profit after zakat and tax in the third quarter to SAR 5.05 million, compared to SAR 3.01 million in the same quarter of last year, by 67.6%. This came after the announcement on Wednesday of the interim financial results for the period ending on September 30, 2023 (nine Months)

Operational profit reached SAR 5.1 million in the third quarter, compared to SAR 2.5 million in the same quarter of the previous year, a growth of 103.7%.

Net profit after zakat and tax in the 9-month period amounted to SAR 15.2 million, compared to SAR 14.1 million in the same period last year, an increase of 7.3%.

Total shareholders’ equity (excluding minority rights) amounted to SAR 236.9 million in the current period, compared to SAR 216.2 million in the same period last year, an increase of 9.5%.

Earnings per share in the current period reached SAR 0.66, compared to SAR 1.43 in the same period last year

The increase in net profit in the current quarter compared to the corresponding quarter of the previous year is attributed to:

–              The adopted policy of increased sales spectrum and upgraded production capacities; the outcome of which showed in sales higher by 62% and in gross profit higher by 60%.

–              The increase in operational profit by 104% that was a result of activating means to check selling and sales expenses and administrative and general expenses in a pace higher than the increase in sales, resulting in a significant operational profit.

–              The net profit increase of 68% which was related to an increase in other revenues, despite the provision made for impairment in other debit balances.

The increase in net profit in the current quarter compared to the previous quarter is attributed to:

–              The increase in sales by 18%, that also resulted in the increase of gross profit by 6%, the operational profit by 13% and net profit by 11%. This is a result of more efficient operations.

The reason for the increase in net profit in the current period compared to the net profit in the corresponding period of the previous year is attributed to:

–              Adoption of the company for new sales policies that resulted in increasing sales by 30% and increase in gross profit by 20%.

–              The decrease in operational profit by 12% is a result of a decreased profit margin.

–              The increase in net profit by 7% resulted from the increase in other revenue despite the provision made for impairment in other debit balances.

Reclassification of Comparison Items

During the period ending on September 30, 2023, the Company has reclassified certain balances as shown below, which management considers to be a more accurate presentation and reflects the relevant nature.

Additional Information

The weighted average number of shares for the three- and nine-months periods ended 30 September 2023 and 30 September 2022 was obtained in accordance with the requirements of IAS 33 “Earnings per Share”.