Naseej turns to SAR 12 mln profit in H1 2022; Q2 at SAR 5.5 mln

Naseej International Trading Co. swung to a net profit after Zakat and tax of SAR 12 million in the first six months of 2022, from a net loss of SAR 10.3 million in the year-earlier period.

The profit was primarily driven by higher sales and lower costs.

In Q2 2022, the company turned to a net profit after Zakat and tax of SAR 5.51 million, from a loss of SAR 5.02 million in the year-earlier period, on a 6% year-on-year (YoY) rise in sales and a 64% increase in gross profit. This is due to raising production rates, opening new production lines, reversal of slow-moving and obsolete inventory provision and reduction of operating expenses.

On a sequential basis, net profit dropped 14.8% from SAR 6.46 million in Q1 2022, on lower sales and higher raw materials’ cost.

Total shareholders’ equity, excluding minority interest, stood at SAR 120.945 million by the end of H1 2022, compared to SAR 45.143 million in the year-earlier period.

Accumulated losses reached SAR 90.687 million as of June 30, 2022, representing 42.85% of the company’s SAR 211.63 million capital.

Naseej’s shareholders approved a capital cut from SAR 211.63 million to SAR 108.97 million during the extraordinary general assembly (EGM) held on July 18. Accordingly, the company offset its accumulated losses in full, Argaam earlier reported.

View More Financial Results