JAZADCO deepens losses to SAR 153.3M in 2024, SAR 81M in Q4

Jazan Development and Investment Co. (JAZADCO) deepened its net loss to SAR 153.3 million in 2024, versus SAR 32.1 million in the year before.

The higher losses were attributed to the increased cost of revenue from SAR 57.3 million in 2023 to SAR 80.7 million in 2024. This was primarily due to operational disruptions, particularly in shrimp operations during the first half of the year.

Additionally, the company recorded a SAR 30.3 million fair value loss on biological assets in 2024, compared to a SAR 11.9 million fair value gain in the previous year, reflecting lower productivity and appreciation of shrimp biomass.

During the same year, JAZADCO also recorded an impairment loss of SAR 4.2 million on property, plant, and equipment. This is besides allocating a SAR 66.9 million provision for the warranty liability of Al Reef Sugar Refining Co. (RESRECO), compared to SAR 33.9 million in 2023, which was reclassified in the year before.

Further, JAZADCO’s income share from associates shrank to SAR 1.2 million in 2024, versus SAR 5.4 million in 2023. The company also incurred a SAR 13.7 million net loss from discontinued operations (the previously-announced water plant closure), compared to SAR 1.4 million in the previous year.

Zakat expenses, in addition, spiked to SAR 8.87 million in 2024, from SAR 3.27 million in 2023. This was primarily due to the backlog settlement of Zakat from 2014 to 2020, paired with an additional Zakat assessment related to 2021 and 2022.

Segment-wise, JAZADCO’s real estate business division recorded an 8% year-on-year (YoY) pullback in operating revenues to stand at SAR 11.7 million by 2024-end, against SAR 12.6 million in 2023. This came as the company carried out some renovations during the year, which temporarily impacted rental income.

Conversely, its aquaculture segment witnessed growth as shrimp sales advanced by 22% YoY to SAR 59.1 million in 2024. This came thanks to increased demand in the domestic market, despite a 30% decline in export sales from SAR 7.1 million in 2023 to SAR 5 million in 2024 on geopolitical and economic woes.

In Q4 2024, JAZADCO widened its net loss to SAR 81 million, from SAR 50.75 million in the prior-ago period. This came although gross profits skyrocketed by more than 10 folds, given the elevated shrimp sales and improved cost control.

Sequentially, the company slid into deeper losses compared to SAR 18.85 million in Q3 2024, as a result of weaker sales due to the seasonal nature of the business.

Shareholders' equity (excluding minority interest) contracted to SAR 309.33 million by the end of Dec. 31, 2024, compared to SAR 473.948 million a year earlier.

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