Al-Waha profits decline by 76% during, to SR15.7 mln

Zahrat Al-Waha for Trading Company revealed a decline in net profit after zakat and tax during the year ending on December 31, 2022 to 15.7 million riyals, compared to 64.5 million riyals in the previous year, by 76%. This came after today’s announcement of the annual financial results ending in 2022- 12-31.

The operational profit amounted to 34.9 million riyals during the year ending on December 31, 2022, compared to 71.8 million riyals in the previous year, a decrease of 51.4%.

The total shareholders’ equity “without minority rights” amounted to 295.7 million riyals in the current year, compared to 302 million riyals in the previous year, a decline of 2%.

Earnings per share in the current year reached 0.7 riyals, compared to 2.87 riyals in the previous year.

– The reason for the decrease in the company’s net profit during 2022 compared to the previous year 2021 is due to:

– The cost of sales increased during 2022 compared to the previous year by 23% due to the increase in raw material prices, especially during the second half, while sales for the current year 2022 increased from the previous year 2021 by 14%.

Selling and distribution expenses increased by 9.70% over the previous year

An increase in general and administrative expenses by 6.7% over the previous year

An increase in the provision for impairment of trade receivables by 39.83%

– The effect of evaluating the inventory at the end of the year, as the value of the decrease in the inventory amounted to 4.5 million riyals, which resulted from the sharp fluctuation in the prices of raw materials during the year 2022, which affected the cost of inventory (raw materials – finished product) on December 31, 2022, which Request a re-evaluation

– The increase in losses of investments at fair value, as the investment in the investment portfolio achieved losses of 2.95 million riyals, compared to profits of 6.17 million riyals in the previous year.

– An increase in financing costs by 65.13% compared to the previous year 2021 due to the increase in the average interest rate (SIBOR).

Additional information:

1- The balance of the paid-up capital on December 31, 2022 amounted to 225 million riyals, an increase of 75 million riyals, its balance on December 31, 2021 due to the distribution of free shares during the year 2022 to the company’s shareholders, and the distribution was made from the retained earnings.

2- The balance of long-term loans on December 31, 2022 amounted to 23 million riyals, a decrease of 37 million riyals from its balance on December 31, 2021 due to the company’s policy of repaying existing loans and relying on self-financing from the company’s cash to finance capital expansions. ..

3- The balance of trade payables on December 31, 2022 decreased by 21% from its balance on December 31, 2021.

4- The basic earnings per share were calculated by dividing the profitability for the year attributable to the holders of the ordinary shares of the company by the weighted average number of ordinary shares outstanding during the year. The weighted number of shares as on December 31, 2022 AD is 22,500,000 shares, after the capital increase by granting bonus shares to shareholders, the weighted average number of shares was applied to the comparison periods retrospectively for the purposes of calculating earnings per share.