Amwaj International Reports SAR 87.80M Net Loss in the Twelve Months 2025
AMWAJ INTERNATIONAL 9537.SA | 0.00 |
On 2026-07-28 09:17:02 (Saudi Time), Amwaj International Co. announced its Annual financial results for the twelve months ended on December 31, 2025.
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 276,613,774 | 300,274,471 | -7.88 | ||
| Gross Profit (Loss) | 29,029,544 | 51,145,418 | -43.24 | ||
| Operational Profit (Loss) | -77,146,195 | 20,063,600 | - | ||
| Net Profit (Loss) Attributable to Shareholders of the Issuer | -87,799,964 | 6,357,488 | - | ||
| Total Comprehensive Income Attributable to Shareholders of the Issuer | -87,781,740 | 6,771,836 | - | ||
| Total Shareholders Equity (after Deducting Minority Equity) | 42,682,567 | 130,464,307 | -67.28 | ||
| Profit (Loss) per Share | -14.63 | 1.06 | |||
| 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 | -28,015,270 | 46.69 | |
| All figures are in (Actual) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current year compared to the last year | The decrease in revenue during the financial year was attributable to a decline in sales volume compared to the corresponding period of the previous year, alongside a reassessment of sales and credit management policies, which impacted net sales during the period. |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is |
The shift from a net profit of SAR 6.36 million in 2024 to a net loss of SAR 87.80 million in 2025 was mainly attributable to the following:
• A decline in revenue, resulting in a decrease in gross profit. • Recognition of losses arising from inventory count discrepancies amounting to SAR 28.67 million, following discrepancies identified at one of the Company’s branches. • Recognition of an expected credit loss provision of SAR 47.12 million, compared to SAR 2.41 million in the previous year. The majority of the provision recognized during the year related to receivables associated with the branch where the incident occurred. • An increase in general and administrative expenses. • The continued incurrence of finance costs. |
| Statement of the type of external auditor's report | Unmodified opinion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | The auditor’s report did not include a qualified opinion, an Emphasis of Matter paragraph, an Other Matter paragraph, a disclaimer of opinion, or an adverse opinion. Under the section titled “Report on Other Legal and Regulatory Requirements,” the report referred to the Company’s failure to announce its annual financial results and file its financial statements within the prescribed timeframe, which resulted in the suspension of trading in the Company’s shares effective April 30, 2026, until the financial statements were published. The auditor further stated that this matter had no material impact on the financial statements. |
| Reclassification of Comparison Items | Certain comparative-period items have been reclassified to conform to the classification and presentation of the current period’s financial statements and enhance comparability. Such reclassifications had no impact on the Company’s results of operations or financial position. |
| Additional Information |
The decline in the Company’s results and its shift to a loss in 2025 were primarily attributable to the financial impact of inventory discrepancies identified at one of the Company’s branches, which had previously been disclosed by the Company, in addition to the recognition of expected credit loss provisions on certain trade receivable balances, the majority of which related to receivables associated with the branch where the incident occurred, as well as provisions for slow-moving and obsolete inventory.
It should be noted that part of these impacts represents accounting provisions and estimates recognized in accordance with the applicable International Financial Reporting Standards and does not necessarily represent final cash losses or cash outflows during the period. The Company also did not recognize any asset or potential recoverable amounts in connection with claims arising from the inventory discrepancy incident, as the related legal proceedings remain ongoing and the outcome of such claims depends on uncertain future events. Accordingly, any amounts collected or recovered in the future will be recognized once the applicable accounting recognition criteria are met, which may have a positive impact on the Company’s results in the period in which such amounts are recognized.
The Company continues to pursue the necessary legal and regulatory measures to collect the receivables and claims and recover the amounts associated with the inventory discrepancies at the branch where the incident occurred. The Company has also implemented corrective measures and strengthened its internal control procedures over inventory and trade receivables to reduce the risk of similar incidents recurring in the future. |
Year-on-Year Performance Drivers
Sales/Revenue declined 7.88% YoY from SAR 300.27 million to SAR 276.61 million, driven by a decline in sales volume and a reassessment of sales and credit management policies. The company swung from a net profit of SAR 6.36 million in 2024 to a net loss of SAR 87.80 million in 2025, primarily due to the recognition of SAR 28.67 million in losses from inventory count discrepancies identified at one of the company's branches, and a sharp increase in expected credit loss provisions to SAR 47.12 million (versus SAR 2.41 million in the prior year), the majority of which related to receivables associated with the affected branch. These factors were compounded by a decline in gross profit (down 43.24% YoY), higher general and administrative expenses, and continued finance costs.
Other Items
The external auditor issued an unmodified opinion on Amwaj International Co.'s financial statements for the year ended December 31, 2025. Under the "Report on Other Legal and Regulatory Requirements" section, the auditor noted the Company's failure to announce its annual financial results and file its financial statements within the prescribed timeframe, which resulted in the suspension of trading in the Company's shares effective April 30, 2026, until the financial statements were published; the auditor stated that this matter had no material impact on the financial statements. Accumulated losses stood at SAR 28,015,270, representing 46.69% of capital. Total shareholders' equity (after deducting minority equity) declined 67.28% YoY to SAR 42,682,567, while loss per share was SAR -14.63 compared to earnings per share of SAR 1.06 in the prior year. The Company noted in the announcement that part of the losses recognized represents accounting provisions and estimates in accordance with IFRS and does not necessarily represent final cash losses or cash outflows during the period. The Company also stated that it did not recognize any asset or potential recoverable amounts in connection with claims arising from the inventory discrepancy incident, as the related legal proceedings remain ongoing, and that any amounts collected or recovered in the future will be recognized once the applicable accounting recognition criteria are met, which may have a positive impact on results in the period of recognition. The Company further stated that it continues to pursue necessary legal and regulatory measures to collect receivables and recover amounts associated with the inventory discrepancies, and has implemented corrective measures and strengthened internal control procedures over inventory and trade receivables to reduce the risk of similar incidents recurring.
Original announcement:
https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcements-details/?anId=97029&anCat=1&cs=9537&locale=arImportant Notice: The announcement information and market data in this report are sourced directly from the Saudi Exchange (Tadawul). This summary is generated by Sahm’s proprietary AI model for informational purposes only. While we strive for accuracy, it should not be construed as financial advice or an investment recommendation.