Naseej swings to SAR 10.2 mln profit in 9M 2022, turns to SAR 1.7 mln loss in Q3

Naseej International Trading Co.  turned to a net profit after Zakat and tax of SAR 10.2 million in the first nine months of 2022, against a net loss of SAR 21.9 million in the year-earlier period.

The positive results were backed by higher sales and improved margins on the utilization of production capacity and lower prices of raw materials. The trading company also reported a decline in operating expenses (opex) and finance charges.

In Q3 2022, the company trimmed net losses after Zakat and tax to SAR 1.7 million, from SAR 11.58 million a year earlier, as sales jumped 37% year-on-year (YoY), along with improved profit margin from a better product mix. It also reported better utilization of production capacity and production rates, which pushed cost per unti lower. In addition, prices of polypropylene decreased.

In Q2 2022, Naseej reported a net profit of SAR 5.51 million. The quarterly losses were attributed to an 11% drop in sales, amid a slowdown in consumer activity, in addition to inflationary pressures that significantly affected spending on consumer goods in general. Naseej also allocated a provision of SAR 4.5 million for Zakat assessments for previous years.

 Total shareholders’ equity, no minority interest, grew to SAR 119.216 million by the end of the nine-month period, from SAR 33.560 million a year earlier.

Accumulated losses stood at SAR 10.24 million as of Sept. 30, 2022, or 9.40% of the company’s capital. 

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