Zahrat Al Waha 9M 2024 profit dips 63% to SAR 6.2M; Q3 at SAR 4.1M

Zahrat Al Waha for Trading Co. reported a net profit of SAR 6.2 million in the nine-month period of 2024, a decline of 63% from SAR 16.9 million in a year-earlier period.

The annual profit drop was attributed to lower sales as sales of the plastic bottles preform segment tumbled year-on-year (YoY) in 9M 2024, given the customers’ direction towards lightweight, low-priced products, alongside a pullback in raw material prices. Sales of the plastic caps segment also slumped YoY due to the decreased raw material prices for the same period.

Additional factors that weighed on the company’s nine-month results included higher selling & marketing expenses, administrative & general expenses, expected credit losses on trade receivables, financing costs and Zakat due to the difference in Zakat assessment for 2019, 2020 and 2023.

In Q3 2024, net earnings fell 43.4% to SAR 4.1 million, from SAR 7.2 million in Q3 2023.

On a quarterly basis, the company turned to profits against a net loss of SAR 1.54 million in Q2 2024, on higher sales volumes of the plastic caps segment.

Total shareholders’ equity, no minority interest, stood at SAR 291.81 million by Sept. 30, 2024, compared to SAR 299.23 million in the prior-year period.

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