‎“Wafrah” records a net profit of SR19 million during 2022‎

Wafrah Industry and Development Co. recorded a net profit after zakat and tax of 18.99 million riyals during the year 2022 AD, compared to losses of 10.9 million riyals in the year 2021 AD. This came after today’s announcement of the annual financial results ending on 12-31-2022. ..

The operational profit amounted to 20 million riyals during the year ending in 2022, compared to losses of 12 million riyals in the previous year.

As for gross peofits, it amounted to 49 million riyals in the current year, compared to 11.5 million riyals in the previous year, an increase of 326%.

Earnings per share in the current year amounted to 1.38 riyals, compared to losses of 0.79 riyals in the previous year.

The main reason for achieving a net profit during this year compared to achieving a net loss during the previous year is due to an increase in sales by 107.87% and an increase in the gross profit rate to 36% compared to a profit rate of 18% during the year 2021 due to the improvement in selling prices. It also led to an increase in the value of property, machinery and equipment, and thus reversed the provision for its previously formed decline, as well as the return of the loan guarantee provision, which reflected positively on the company’s net profits despite the decrease in the other revenue item.

The company said that some of the comparative figures for the previous year have been reclassified to conform to the figures for the current year

Earnings per share:

Earnings per share are calculated from the net profit from main operations by dividing the net profit from main operations for the year by the weighted average number of shares during the year. Earnings per share are also calculated from the net profit for the year by dividing the net profit for the year by the weighted average number of shares during the year.

Earning / (loss) per share for the year ending on December 31, 2022 and on December 31, 2021 was calculated by dividing the net profit / (loss) from main operations and the net profit / (loss) for the year by the weighted average number of shares outstanding during the year, adjusted for the effect of the potential reduction for ordinary shares. And since there is no convertible liability to equity instruments, the diluted earning / (loss) per share is not different from the basic earning / (loss) per share.

The company stated that the weighted average number of shares for the two years ending on December 31, 2022 and December 31, 2021 was reached in accordance with the requirements of International Accounting Standard No. 33 “Earnings per Share.”

The authorized, issued and fully paid capital of the company as of December 31, 2022 AD amounts to 231,511,050 Saudi riyals divided into 23,151,105 shares, the value of each share is 10 Saudi riyals (31 December 2021 AD, the amount of 77,170,350 Saudi riyals divided into 7,717,035 shares, the value of the share is 10 riyals).

The accumulated losses amounted to 9,686,142 riyals, or 4.18% of the capital, amounting to 231,511,050 riyals.