MOBI profits fell to SR9.5 mln in H1, down 22.3%

The National Chemical Fertilizer Industry Company “MOBI” revealed that the net profit after zakat and tax during the first half decreased to SR9.5 million, compared to SR12.2 million in the same period last year, by 22.3%.
This came after announcing on Sunday the preliminary financial results for the period ending on 30.06.2022 (six months).
The operational profit amounted to SR9.2 million in the first half, compared to SR12.3 million in the same period of the previous year, down 25.6%.
The gross shareholders’ equity “without minority rights” amounted to SR69.1 million in the 6-month period, compared to SR66.3 million in the same period last year, a growth of 4.3%.
Profits per share in the current period reached SR1.88, compared to SR2.44 in the same period last year.
The reason for the (decrease) in net profit during the current period compared to the same period of the previous year is due to the increase in raw materials prices during the first quarter in the current period compared to prices in the same period despite the growth in sales during the current period, but the increase in raw materials prices has significantly affected the net profit.
Some figures for the comparative period have been re-presented to conform to the classification of the current period figures based on a reassessment of determining control over Jal Al-Sahraa Company for Agricultural Production and has ceased consolidating the Financial statements of Jal Al-Sahra for Agriculture Production and it was considered this as a joint arrangement, and the investment in Jal Al-Sahraa Company for Agricultural Production was recognized as an investment in a “joint venture” retroactively.
Accordingly, the Company has applied the equity method retrospectively to account for investment in Jal Al-sahra for Agricultural Production Company which was previously accounted for as subsidiary.
Sales prices have been gradually adjusted during the current period starting from April 2022 in order to meet the rising prices of raw materials, and prices have been raised by an average of 65% for fertilizer products.