On 2026-08-09 08:32:06 (Saudi Time), Sadr Logistics Co. 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, sales/revenue increased 22.3% YoY from SAR 65.74 million to SAR 80.40 million, primarily driven by a 132% surge in logistics segment revenue (from SAR 14.13 million to SAR 32.74 million) fueled by the Sadr Park project, alongside stable steel segment performance, despite a 5% decline in wood segment sales and a 73% drop in other segment revenues. The company swung to a net profit of SAR 5.43 million from a net loss of SAR 7.18 million in the prior year period, as the 22% revenue growth outpaced the 8% rise in cost of revenue, yielding a 78% increase in gross profit, while a 97% reduction in the expected credit loss allowance on trade receivables (from SAR 6.30 million to SAR 0.20 million) drove the turnaround to an operating profit of SAR 9.37 million versus an operating loss of SAR 5.72 million previously. These gains more than offset the increase in net finance costs from SAR 0.81 million to SAR 3.00 million and a 10% decrease in Zakat expense from SAR 1.12 million to SAR 1.00 million.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined 6.272% (from SAR 41.50 million to SAR 38.90 million), primarily driven by a 23% drop in steel segment sales from SAR 15.84 million to SAR 12.14 million, partially offset by modest gains in logistics, wood, and other segments. Net profit fell 15.185% QoQ (from SAR 2.94 million to SAR 2.49 million), attributable to the revenue decline, a 5% rise in finance costs, recognition of an expected credit loss allowance of SAR 0.59 million, and higher Zakat expense of SAR 0.60 million versus SAR 0.40 million in the prior quarter, despite a 20% decrease in selling and marketing expenses and a 6% reduction in general and administrative expenses.

Other Items

The external auditor issued an unmodified conclusion on the condensed interim financial statements for the six-month period ended 30 June 2026. Under the "Other Matter" paragraph, the independent auditor noted that the financial statements for the year ended 31 December 2025 were audited by another independent auditor, who expressed an unmodified opinion on 17 Shawwal 1447H (corresponding to 5 April 2026), and that the condensed interim financial statements for the three-month and six-month periods ended 30 June 2025 were reviewed by the same predecessor auditor, who expressed an unmodified conclusion on 20 Safar 1447H (corresponding to 14 August 2025). Accumulated losses stood at SAR 5,432 thousand, representing 3.1% of capital. Total shareholders' equity (after deducting minority equity) was SAR 170,290 thousand, up 6.213% from SAR 160,328 thousand in the prior year period. Earnings per share for the current period were SAR 0.031, compared to a loss per share of SAR 0.041 in the corresponding prior year period, calculated based on a weighted average of 175,000,000 ordinary shares for both periods. Comparative figures have been adjusted following the correction of an accounting error related to the recognition of operating lease revenue for the Sadr Park project, whereby lease revenue was recalculated on a straight-line basis over the lease term in accordance with IFRS 16 "Leases," with certain comparative figures also re-presented and reclassified to conform with the current period presentation.

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