Wafrah turns to profits of SR6mln in 1Q

Wafrah for Industry and Development Co. announced that its profits after zakat and tax reached SR 6.15 million in the first quarter of 2022 compared to losses of 198.5 million during the same period of 2021.

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

The company’s operational profit surged 1326% to SR 7.12 million in the 1st quarter of the current year from SR 499.5K in the same period of the previous year.

Gross profit of Wafrah rose 115.3% to SR 13.14 million in the first quarter of this year from SR 6.10 million a year ago, while the profit per share advanced to SR 0.8 from loss per share at SR 0.03.

Turning to net profits was mainly driven by the increase in sales by 60.22 %, and to the increase in the average selling price and to the decrease in cost, which resulted from the increase in production volume, despite the decrease in other revenues.

The increase in net profit in the current quarter compared to the previous quarter is attributed to the increase in sales by 181.46 % and to the increase in the average selling price, and the decrease in cost, which resulted from the increase in production volume, and to the decrease in the general and administration expenses, despite the decrease in other revenues.

We would like to draw attention to Note No. (4) of the attached interim condensed financial statements, which indicates that the Company has achieved accumulated losses amounting to SAR 17,592,905 as of March 31, 2022, and the Company’s current liabilities exceeded its current assets by SAR 12,798,193 on that date, and these circumstances indicate the existence of a material uncertainty, that may cast significant doubt on the Company’s ability to continue as a going concern, and our conclusion has not been modified in this respect.

Additional Information:

Earnings per shares

The weighted average number of shares was reached by taking the effect of the capital decrease from the beginning of the earliest period offered to comply with the requirements of IAS 33.

In response to the spread of the Covid-19 virus around the world and the resulting disruption to social and economic activities in those markets, the company’s management has proactively assessed its impact on its operations and has taken a series of preventive actions, including the formation of teams and ongoing crisis management operations to ensure the health and safety of its employees , customers and society as a broader scope, as well as ensuring the continuity of supplying its products in all its markets.

Based on these factors, the company’s management believes that the Covid-19 epidemic did not have a material impact on the company’s financial results that were reported for the period ending on 30 September 2021.

In view of the continuation of the pandemic, the company is closely monitoring the situation, especially in the coming months of this year, and the company expects the situation to improve gradually and hopes that the outbreak of Covid 19 will end during the current year.