Al Abdullatif turns to SAR 11.7 mln losses in FY2019

AlAbdullatif Industrial Investment Co. reported a net loss after Zakat and tax of SAR 11.7 million for the fiscal year 2019, from a net profit of SAR 8 million a year earlier, according to a bourse filing on Thursday.

The loss is attributed to decrease in sales due to lower demand for products, lower profit margin due to strong competition in local and international markets, in addition to higher cost of production due to a drop in manufacturing capacity and bearing unutilized fixed operating costs.

The company also cited an increase in the cost of sales and a rise in marketing and financing expenses despite the decrease in general and administrative (G&As) and Zakat expenses.

The decrease in the value of investments classified at fair value, as well as the effect of the actuarial study for calculating the end-of-service provision, and a drop in the evaluation of the inventory of basic materials also contributed to the loss.

In Q4 2019, the company widened its net loss to SAR 21.38 million from SAR 3.79 million in Q4 2018.