Gypsum reports profit decline of 35% during 2021

National Gypsum Co. announced that its profit after zakat and tax decreased 35% to SR 21 million in 2021 from SR 32 million.

The company’s operational profit declined 38% to SR 22 million compared SR 36 million.

Gross profit also slipped 30% to SR 34 million last year from SR 49 million in the year before, while profit per share fell to SR 0.66 compared to SR 1 in 2020.

Lower profits were due to net sales decreased by %17.54 due to turbulent changes in the market.

With reference to Note No. (5) and Note No. (25), the company’s property, machinery and equipment include capital projects under implementation, with a balance at the date of the financial position of 42 million Saudis, represented in the value of expenses. Regarding the installation work and the operation of the Alpha and Beta plant in the company’s branch in Dammam, where the installation work was not completed. It includes strategic spare parts worth 16.4 million riyals for machinery and equipment, as well as property, machinery and equipment at an amount of 64 million riyals for the production of gypsum walls, which achieves a net loss annually. The company’s management prepared a study for the recoverable value of the projects under implementation and it was not enough to determine whether there were any necessary adjustments to its book value, and the management is currently working on a new study that takes into account all developments in the market, and therefore we were unable to determine whether there was a need To record any impairment in the value of those assets in these accompanying financial statements.