Namaa Chemicals records SAR 26.3 million losses during Q2

Namaa Chemical Company recorded losses after zakat and tax of SAR 26.3 million during the second quarter, compared to a profit of SAR 27 million in the same quarter of last year. This came after the announcement on Sunday of the interim financial results for the period ending on June 30, 2023 (6 months).

The operational loss amounted to SAR 22 million during the second quarter, compared to a profit of SAR 31 million in the same quarter of last year.

The net loss after zakat and tax during the current period amounted to SAR 45 million, compared to a profit of SAR 60 million in the same period last year.

The loss per share amounted to SAR 1.92 riyals during the current period, compared to a profit of SAR 2.55 riyals in the same period last year.

The reason for recognizing a net loss during the current quarter compared to the same quarter of the previous year is due to:

• The average selling price significantly decreased impacting the revenue by 20% as a result of the global economic conditions, despite the increase in the quantities sold during the period by 38% while the selling and marketing expenses decreased due to the decrease in shipping costs compared to last year.
• The increase in financing costs amounted SAR 242 thousand as a result of the increase in interest rates.

That is despite

• Other income improved due to decrease in forex losses

The reason for the increase in net loss during the current quarter compared to the previous quarter is due to:

• The average selling price significantly decreased, impacting the revenue by 5% as a result of the global economic conditions, despite the increase in the quantities sold during the period by 13%.
• An increase in shipping expense due to the increase in sold quantities.
• Other income decreases due to an increase in forex losses.

That is despite

• Decrease in General & Admin expenses .

The reason for realizing the net loss during the current period compared to the same period of the previous year is due to:

• Revenues decreased by 22% due to the sharp decline in the average selling prices of products as a result of the global economic conditions, despite the increase in the quantities sold during the period by 23%, while the selling and marketing expenses decreased due to the decrease in shipping costs compared to last year.

An increase in financing costs by SAR 163 Thousand as a result of the increase in interest rates.

Retained earnings and statutory reserve for the period ending on June 30, 2023 amounted to SAR 105.7 million and SAR 6.4 million, respectively, representing in total 48% of the capital, a decrease of 30% compared to the total retained earnings and statutory reserve for the previous year as a result of the continued decline in average selling prices of products as a result of global economic conditions and their impact on the decline in demand.