“Tasnee” profits decline by 73.8% during 2023 to 174.6 million riyals

The net profit of the National Industrialization Company during the year ending on December 31, 2023 decreased to 174.6 million riyals, compared to 666.3 million riyals in the year before last, by 73.8%. This came after today’s announcement of the annual financial results ending on December 31, 2023.

Operating profit amounted to 413.9 million riyals during the year ending December 31, 2023, compared to 1.32 billion riyals in the year before last, a decline of 68.6%.

Total ownership rights (after excluding non-controlling interests) amounted to 9.64 billion riyals last year, compared to 9.61 billion riyals in the year before last, an increase of 0.36%.

Earnings per share last year reached 0.26 riyals, compared to 1 riyal in the year before last.

 The reason for the decrease in revenues by 8% is mainly due to the decrease in the average selling prices of products, despite the increase in the quantities sold for most products.

The reason for the decrease in net profit is mainly due to the decrease in revenues and the share of the group’s profits from investment in joint projects and associate companies due to the decrease in the average selling prices of products and the recording of the non-cash tax expense resulting from the change in accounting estimates for the deferred asset tax of the associate company (Tronox Holdings) and the increase in the cost of sales. Selling and distribution expenses and financing costs were partially offset by the increase in the quantities sold for most products, the decrease in general and administrative expenses, the provision for decline in the value of non-financial assets, the provision for zakat, and the increase in revenues from Murabaha.

During the year, and within the framework of efforts to restructure the acrylic business, the group acquired a joint venture (Saudi Acrylic Polymers Company “SABCO”) and one of its associate companies, which led to the group recognizing the estimated goodwill resulting from the acquisition and recording a partial impairment charge for goodwill in the amount of 226 million Saudi riyals. (Manufacturing share: 118 million Saudi riyals).

The financial impact of the acquisition was disclosed in Note No. 45 of the group’s consolidated financial statements ending on December 31, 2023.