Maadaniyah expands losses to SAR 7.4M in Q1 2024

National Metal Manufacturing and Casting Co. (Maadaniyah) reported a net loss of SAR 7.4 million for Q1 2024, up from SAR 4.9 million a year earlier.

The extended losses were attributed to the year-on-year (YoY) decrease in sales due to the lower average selling price of drawn wire products, although these products’ sales volumes soared 33% YoY during the first quarter of 2024.

This was also coupled with lower sales of axles and casting products by about 19% YoY due to a lower demand, mainly for casting products. The first-quarter losses also deepened amid the increase in selling & distribution expenses, alongside the decrease in other income and proceeds from deposits with banks.

Sequentially, the company cut losses from SAR 13.06 million in Q4 2023, buoyed by improved sales, lower general & administrative expenses and the reversal of the provision for doubtful debts.

Total shareholders’ equity, no minority interest, fell to SAR 276.89 million as of March 31, 2024, from SAR 310.7 million in the year before.

Accumulated losses stood at SAR 104.28 million by the end of Q1 2024, representing 29.46% of Maadaniyah’s SAR 354 million capital.

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