SVCP losses jump 633% to SR 10.5 mln losses in Q2

The net loss before zakat of Saudi Vitrified Clay Pipes Co. (SVCP) jumped in the second quarter to SR10.5 million, compared to SR1.4 million in the same quarter of last year, by 633%.

This came after the announcement on Thursday of the preliminary financial results for the period ending on 30.06.2022 (six months).

The operational loss amounted to SR 10 million in the second quarter, compared to SR 0.78 million in the same quarter of the last year, up 1159%.

The gross loss in the second quarter amounted to SR4.6 million, compared to gross profit of SR 4.4 million in the same quarter of the last year.

The net loss before zakat in the current period amounted to SR 9 million, compared to SR 1.2 million in the same period last year, an increase of 661%.

Losses per share in the current period reached SR 0.61, compared to SR 0.08 in the same period last year.

The reason for the increase in net losses during the current quarter compared to the same quarter of the previous year is due to the decrease in sales as a result of the decrease in the volume of demand for pipes in general due to the slowdown of projects and the increase of cost of sales

The increase in net losses during the current quarter compared to the previous quarter is due to the decrease of sales and increase costs cost of sales.

The reason for the increase in net losses during the current period compared to the same period of the previous year is due to the decrease of sales as a result of the decrease in the volume of demand for pipes in general due to the slowdown of projects and increase in the cost of sales.

Additional Information:

The company achieved a margin of losses during the second quarter of 2022 due to decrease of sales and production volume, which led to a significant increase in production costs due to fixed cost and high costs of some production inputs.