Al Jouf Cement Reports SAR 46.00M Net Loss in the Six Months 2026
JOUF CEMENT 3091.SA | 0.00 |
On 2026-08-11 15:45:53 (Saudi Time), Al Jouf Cement Co.(3091.SA) announced its Interim financial results for the six months ended on June 30, 2026.
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 43,937,828 | 69,229,619 | -36.533 | 40,193,974 | 9.314 |
| Gross Profit (Loss) | -450,459 | 6,665,168 | - | 631,501 | - |
| Operational Profit (Loss) | -10,734,474 | -5,547,808 | 93.49 | -6,686,235 | 60.545 |
| Net Profit (Loss) Attributable to Shareholders of the Issuer | -24,381,096 | -23,391,848 | 4.229 | -21,603,738 | 12.855 |
| Total Comprehensive Income Attributable to Shareholders of the Issuer | -24,381,096 | -23,391,848 | 4.229 | -21,603,738 | 12.855 |
| All figures are in (Actual) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 84,131,802 | 137,727,832 | -38.914 |
| Gross Profit (Loss) | 181,042 | 12,605,895 | -98.563 |
| Operational Profit (Loss) | -17,420,709 | -11,821,043 | 47.37 |
| Net Profit (Loss) Attributable to Shareholders of the Issuer | -45,984,834 | -38,626,937 | 19.048 |
| Total Comprehensive Income Attributable to Shareholders of the Issuer | -45,984,834 | -38,626,937 | 19.048 |
| Total Shareholders Equity (after Deducting Minority Equity) | 864,106,742 | 1,077,857,124 | -19.831 |
| Profit (Loss) per Share | -0.42 | -0.36 | |
| All figures are in (Actual) Saudi Arabia, Riyals | |||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | 176,830,108 | 16.27 | |
| All figures are in (Actual) Saudi Arabia, Riyals | |||
Year-on-Year Performance Drivers
For the six-month period ending 30 June 2026, sales/revenue declined 38.914% YoY from SAR 137.73 million to SAR 84.13 million, primarily driven by lower local sales volumes, partially offset by an improvement in average selling prices. Net loss attributable to shareholders widened by 19.048% YoY from SAR 38.63 million to SAR 45.98 million, mainly due to the impact of lower revenue, though this was partially mitigated by reduced general and administrative and selling expenses during the period. Gross profit collapsed by 98.563% YoY from SAR 12.61 million to SAR 0.18 million, and operational loss deepened by 47.37% from SAR 11.82 million to SAR 17.42 million, reflecting the significant deterioration in the Group's financial performance, which has also raised material uncertainty regarding its ability to continue as a going concern, compounded by accumulated losses of SAR 176.83 million and a working capital deficit of SAR 655.90 million as at 30 June 2026.
Quarter-on-Quarter Performance Drivers
QoQ revenue rose 9.314% to SAR 43.94 million (from SAR 40.19 million in the previous quarter), driven by higher export sales volumes and improved average selling prices. Despite the revenue improvement, net loss widened by 12.855% QoQ to SAR 24.38 million (from SAR 21.60 million), primarily due to higher general and administrative expenses arising from non-recurring expenses. Gross profit also swung to a loss of SAR 0.45 million from a profit of SAR 0.63 million in the prior quarter, reflecting continued cost pressures.
Other Items
The external auditor issued a qualified conclusion for Al Jouf Cement Co.'s interim condensed consolidated financial information for the six-month period ended 30 June 2026. The basis for the qualified conclusion includes two key matters: first, property, plant and equipment with a carrying amount of 1,654 million(currency not specified in original) as of 30 June 2026 may be subject to impairment, as the Group failed to achieve performance goals set in the board-approved business plan; an external consultant was engaged to perform an impairment assessment, but it had not been finalized as of the report date, leaving management unable to determine whether any impairment loss was required. Second, during the year ended 31 December 2025, management recognized an inventory loss of 97.8 million(currency not specified in original) relating to work-in-progress inventory, resulting from discrepancies between inventory records and an expert report on the year-end physical count; an investigation by an external consultant remains ongoing, and it could not be ascertained whether this loss pertains to 2025 or prior years. In addition, the auditors highlighted a material uncertainty related to going concern, drawing attention to Note 2 of the financial information: the Group recorded a net loss of 45,984,834(currency not specified in original) for the six-month period ended 30 June 2026, accumulated losses of 176,830,108(currency not specified in original), and current liabilities exceeding current assets by 655,903,668(currency not specified in original), which "indicate the existence of a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern." Total shareholders' equity declined 19.831% YoY to SAR 864,106,742, and loss per share stood at SAR -0.42. As additionally disclosed by the company, accumulated losses of SAR 176.83 million represent approximately 16.27% of share capital, remaining below the 20% threshold.
Original announcement:
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