Zamil turns to profits of SAR 26.8M in 2024, SAR 8.2M in Q4

Zamil Industrial Investment Co. turned to a net profit of SAR 26.8 million in 2024, against losses of SAR 297.8 million in 2023.

Consolidated sales increased by 30% year-on-year (YoY) in 2024, due to sales growth in the AC and steel segments by 66% and 14%, respectively, by year-end.

Further, the 2024 operating income of the steel and insulation segments grew by SAR 154 million and SAR 34 million, respectively.

The operating losses of the AC segment declined from SAR 367 million in 2023 to SAR 45 million in 2024.

Other revenues also surged by SAR 31.3 million on annual basis in 2024. This was driven by gains from the sale of damaged items during the fire incident that took place in Q1 2023.

However, this was partly offset by the increased provision for the expected credit losses (ECL) to align with International Financial Reporting Standards (IFRS).

A non-cash provision of SAR 250.8 million was accounted for ECL on contract assets and trade receivables for 2024, compared to SAR 157.1 million in the previous year, resulting in an incremental provision of SAR 93.7 million.

The company also swung to net earnings of SAR 8.2 million in Q4 2024, against net losses of SAR 66.8 million a year earlier.

Sequentially, the three-month bottom line grew 16.6% from SAR 7.05 million in Q3 2024.

Accumulated losses reached SAR 62.90 million by the end of the current period, representing 10.5% of capital.

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