Mayar swings to net loss of SAR 41.9M in 2023

Mayar Holding Co. turned to a net loss of SAR 41.9 million in 2023, against a net profit of SAR 800,000 a year earlier.

The loss-making was attributed to the decline in sales of some subsidiaries. This is besides the fundamental change in the exchange rate of the Egyptian currency against the US dollar, which caused some distortions especially since coping with this change was beyond the company’s control, despite the increase in EGP sales.

Furthermore, work at one of the subsidiaries’ production lines was paused for seven months. The company also cited increased raw materials prices for units operating in Egypt given the difficulty of importing raw materials from abroad and high costs amid the weakening devalued EGP.

This was paired with higher financing costs given the significant hike in lending rates for 2023, in tandem with increased general & administrative expenses and selling & marketing expenses as well as lower other revenues.

The company also recorded establishment expenses related to setting up a new company, the commercial activity of which has not been initiated in 2023.

Shareholders' equity (after minority interest) amounted to SAR 32.4 million in 2023, compared to SAR 77.1 million a year ago.

Accumulated losses amounted to SAR 28.88 million by the end of Dec. 31, 2023, representing 48.13% of Mayar’s SAR 60 million capital.

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