Sadr Logistics reports losses of SR995K in Q2‎

Sadr Logistics Co. recorded a net loss after zakat and tax in the second quarter of SR 995K, compared to a profit of SR 245 thousand in the same quarter of last year. (six months)

The operational loss amounted to 687 thousand riyals in the second quarter, compared to a profit of 714 thousand riyals in the same quarter of the previous year.

The gross profit amounted to 3.2 million riyals in the second quarter, compared to 4 million riyals in the same quarter of the previous year, a decrease of 20%.

The net loss after zakat and tax in the 6-month period amounted to 2.8 million riyals, compared to a profit of 846 thousand riyals in the same period last year.

The total shareholders’ equity “without minority rights” amounted to 536.7 million riyals in the current period, compared to 556.19 million riyals in the same period last year, a decrease of 3.4%.

Profits per share in the current period reached 0.16 riyals, compared to 0.34 riyals in the same period last year

The company achieved (net loss) during the current quarter compared to the net profit achieved during the same quarter of the previous year for the following reasons:

Increase in cost of sales by 9.92% due to higher raw material prices and higher operating costs.

An increase in general and administrative expenses by 57.02% due to the increase in salaries and wages for the administrative cadres that were attracted to implement the company’s expansion plans.

The Zakat provision will increase by 135.59% to increase the capital, and the value of the Zakat provision will gradually decrease as the company progresses in implementing its expansion plans and capital spending.

Despite an increase in sales by 2.48%, a decrease in selling and marketing expenses by 5.06%, a decrease in provision for credit losses, a decrease in financing costs, and an increase in investment profits and other income.

The net losses decreased during the current quarter compared to the net losses during the previous quarter with a noticeable improvement in the results for the following reasons:

A decrease in the cost of sales by 19.47%, a decrease in selling and marketing expenses by 42.22%, a decrease in financing costs by 10.37%, and an increase in investment profits and other income by 72.26%.

Despite a decrease in sales by 16.65%, and an increase in general and administrative expenses by 9.32%.

The company achieved (net loss) during the current period compared to the net profit achieved during the same period of the previous year for the following reasons:

The cost of sales increased by 31.94% due to the increase in the prices of raw materials and the increase in operating costs.

The increase in selling and marketing expenses by 31% due to the increase in sales, and the general and administrative expenses by 57.84% due to the increase in salaries and wages for the administrative cadres that were attracted to implement the company’s expansion plans.

The Zakat provision will increase by 138.99% to increase the capital, and the value of the Zakat provision will gradually decrease as the company progresses in implementing its expansion plans and capital spending.

Despite an increase in sales by 17.09%, a decrease in the provision for credit losses, a decrease in financing costs, and an increase in investment profits and other income.

Additional Information:

The basic and diluted share of profit and loss for the current period and the corresponding period of the previous year was calculated by dividing the net profit or loss for each period after zakat attributable to the company’s shareholders by the weighted average number of ordinary shares outstanding at the end of each period, where the weighted average shares for the current period 17,500,000 shares compared to 2,500,000 shares for the same period of the previous year.