On 2026-08-11 16:10:13 (Saudi Time), Advanced Building Industries Co.(2240.SA) announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, consolidated sales/revenue declined 7.128% YoY from SAR 2,978.69 million to SAR 2,766.36 million, primarily driven by a decrease in Construction sector revenue, partially offset by revenue growth in the AC, Steel, and Insulation sectors. Despite the revenue decline, net profit attributable to shareholders rose 45.656% YoY from SAR 37.20 million to SAR 54.18 million, mainly due to higher gross profit and operating income in the Steel and Insulation sectors, a lower ECL provision, a higher share of results from associates and joint ventures, and higher other income. It is worth noting that the financial statements carry a qualified auditor's conclusion due to an ongoing investigation into inventory shortages and discrepancies in the Air Conditioners segment, with total adjustments of SAR 84.70 million recorded as of 30 June 2026, and comparative figures have been restated accordingly.

Quarter-on-Quarter Performance Drivers

QoQ revenue rose 5.279% to SAR 1.42 million (converted: SAR 1,418,753 thousands = SAR 1,418.75 million), driven primarily by increased sales in the AC sector. Net profit attributable to shareholders surged 352.488% QoQ (from SAR 9.81 million to SAR 44.37 million), fueled by higher sales and improved gross profit in the AC, Steel, and Insulation sectors, stronger operating income in the Steel and Insulation sectors, higher other income, and lower Zakat and income tax expense. --- **Correction — let me apply the unit conversion properly and rewrite cleanly:** QoQ revenue increased 5.279% to SAR 1,418.75 million (from SAR 1,347.61 million in the prior quarter), supported mainly by growth in AC sector sales. Net profit attributable to shareholders surged 352.488% QoQ to SAR 44.37 million (from SAR 9.81 million), driven by higher sales and improved gross profit in the AC, Steel, and Insulation sectors, stronger operating income in the Steel and Insulation sectors, higher other income, and lower Zakat and income tax expense.

Other Items

The external auditors issued a qualified conclusion on the condensed consolidated interim financial statements for the six-month period ended 30 June 2026. The basis for the qualified conclusion relates to inventories of the Air Conditioners business segment stated at 525 million(currency not specified in original) (out of total inventories of 1,309 million(currency not specified in original)), for which management identified shortages and discrepancies between the inventory general ledger and the inventory subledger. As a result of an ongoing investigation, management recorded restatement adjustments of 48 million(currency not specified in original) as at 31 December 2024, 69 million(currency not specified in original) as at 31 December 2025, and 63.7 million(currency not specified in original) as at 30 June 2026. Additionally, following physical inventory counts performed at end of April 2026, management recorded a further inventory shortage adjustment of 21 million(currency not specified in original), bringing the total adjustment as at 30 June 2026 to 84.7 million(currency not specified in original). As of the date of the review report, the investigation into the nature and completeness of the identified inventory shortages and discrepancies remains in progress, and the auditors were unable to determine whether any further adjustments may be necessary to inventory and related items, retained earnings, or related financial statement line items across current and comparative periods. An Other Matter paragraph also notes that the consolidated financial statements for the year ended 31 December 2024 were audited by a different auditor who issued an unmodified opinion, excluding the adjustments described in Note 22. Accumulated losses stood at 827(currency not specified in original) thousand, representing 0.14% of capital. Earnings per share for the current six-month period were SAR 0.9, compared to SAR 0.62 for the same period of the prior year. Total shareholders' equity (after deducting minority equity) increased 19.639% to SAR 527,467 thousand from SAR 440,880 thousand in the same period of the prior year. Comparative figures have been reclassified and restated to conform with the current period presentation.

Original announcement:

https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcements-details/?anId=97555&anCat=1&cs=2240&locale=ar

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