Zahrat Al Waha H1 2024 profit declines 78% to SAR 2.2M; Q2 losses at SAR 1.5M

Zahrat Al Waha for Trading Co. prfot dropped to SAR 2.2 million by the end of H1 2024, a 78% year-on-year (YoY) decrease from SAR 9.8 million in H1 2023.

The company attributed the decline to a number of factors, including lower sales volume and lower selling prices caused by a drop in raw material prices, particularly in Q1 2024; increased selling and marketing expenses; higher general and administrative expenses; and an increased provision for impairment losses on trade receivables in Q1 2024.

It also cited a decline in gains from fair value investments due to Q2 2024 losses, higher financing costs, and a rise in Zakat due to the difference in 2019 and 2020 assessments.

Zahrat Al Waha incurred losses of SAR 1.5 million in Q2 2024, compared to a profit of SAR 7.84 million in Q2 2023 and SAR 3.70 million in Q1 2024.

This was due to a number of factors, including lower sales as a result of lower selling prices, which were influenced by lower raw material prices; increased cost of goods sold; and higher selling and marketing expenses.

Shareholders' equity, no minority interests, at the end of the period was SAR 288.022 million, compared to SAR 292.159 million at the end of the same period last year.

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