On 2026-05-11 15:35:44 (Saudi Time), Jazan Development and Investment Co. announced its Interim financial results for the three months ended on March 31, 2026.

Year-on-Year Performance Drivers

Sales increased 44.93% YoY to SAR 39.92 million, primarily driven by higher shrimp sales which rose to SAR 35.04 million compared to SAR 23.54 million in Q1 2025, representing a 48.8% increase. Net profit declined 46.834% YoY to SAR 5.13 million despite higher revenues, mainly due to decreased fair value gains from biological asset revaluation (SAR 8.61 million vs SAR 11.94 million), absence of a one-time SAR 1.25 million gain from asset sales that occurred in the prior year, and increased selling, marketing, and administrative expenses.

Quarter-on-Quarter Performance Drivers

QoQ revenue surged 120.8% to SAR 39.92 million driven by seasonal shrimp harvesting, with shrimp sales increasing to SAR 35.04 million compared to SAR 13.90 million in the previous culture period. Net profit turned positive at SAR 5.13 million versus a SAR 9.25 million loss in the prior quarter due to improved production availability and cost absorption from active harvesting operations. Both domestic and international markets recorded improved pricing during the quarter, further supporting profitability recovery.

Other Items

The external auditor issued an unmodified conclusion but included a material uncertainty paragraph regarding going concern. As stated in the auditor's report: "We draw attention to Note (3) to the accompanying condensed interim consolidated financial statements, which indicates that the Group's accumulated losses as at 31 March 2026 amounted to SAR 125.66 million. As of that date, the Group's current liabilities exceeded its current assets by SAR 104.67 million, which raises a substantial doubt about the Group's ability to continue its operations as a going concern." Accumulated losses represent 25.13% of the SAR 500 million share capital, showing improvement from 26.17% at December 2025. The company reclassified certain comparative period figures to conform with current presentation, including separating continuing and discontinued operations following water factory closure per IFRS 5 requirements, and moving "Other Income, net" from operating activities to below operating profit line.

Original announcement:

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