Zahrat Al Waha’s profit slides 76% to SAR 15.7 mln in 2022; Q4 at SAR 5.4 mln

Zahrat Al Waha for Trading Co. reported a slump of 76% in its annual net profit after Zakat and tax to SAR 15.7 million from SAR 64.6 million in 2021.

The 12-month profit was battered by cost of goods sold, which increased by 23% year-on-year (YoY) on higher raw material prices, especially during the second half.

Selling and distribution expenses, as well as general and administrative expenses (G&A) increased by 9.70% and 6.7% YoY, respectively in the same period.

Al Waha also cited a rise in the provision for impairment of trade receivables by 39.83% YoY.

The effect of evaluating the inventory at the end of the year also weighed on the 2022 results, as the decline in inventory amounted to SAR 4.5 million.

Al Waha also recorded higher investment loss at fair value, as the investment portfolio incurred losses of SAR 2.95 million, against profits of SAR 6.17 million in 2021.

Financing costs also jumped by 65.13% YoY, due to the increase in average SAIBOR rates.

In Q4 2022, the company’s net profit after Zakat and tax tumbled 74% to SAR 5.4 million, from SAR 20.5 million in the prior-year period.

Net profit surged from SAR 420,000 in Q3 2022.

Total shareholders’ equity, no minority interest, decreased to SAR 295.76 million as of Dec. 31, 2022, from SAR 301.90 million a year earlier.

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