On 2026-08-06 15:52:41 (Saudi Time), Saudi Industrial Development Company (SIDC) 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 declined 17.882% YoY to SAR 42.89 million (from SAR 52.23 million), primarily driven by decreased sales in the mattresses and foam segment as well as the sanitary ware segment. The net loss attributable to shareholders widened by 39.177% YoY to SAR 24.69 million (from SAR 17.74 million), mainly due to a deterioration in operating profit, which was driven by higher impairment charges on asset values and reduced gross profit resulting from the decline in sales. The auditor also highlighted a material uncertainty related to going concern, noting the Group incurred a net loss of SAR 24.3 million and generated negative operating cash flows during the period, compounded by a debit balance in the foreign currency translation reserve of SAR 52 million and a debit balance in the reserve for changes in fair value of investments of SAR 133 million.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined 7.967% to SAR 20.56 million (from SAR 22.34 million in the previous quarter), driven by lower sales in the mattresses and foam segment. The net loss attributable to shareholders widened by 12.295% to SAR -13.06 million (from SAR -11.63 million), primarily due to a deterioration in operating profit caused by the recognition of higher impairment in asset values.

Other Items

The external auditor issued an unmodified conclusion on the condensed consolidated interim financial statements for the six-month period ended 30 June 2026; however, the auditor's report includes an emphasis of matter paragraph highlighting a material uncertainty related to going concern. As stated in the auditor's report: "We draw attention to Note (2-2) to the accompanying condensed consolidated interim financial statements, which indicates that the Group incurred a net loss of SAR 24.3 million and generated negative operating cash flows during the six-month period ended 30 June 2026, as the actual results were below the previous forecasts. Furthermore, as at 30 June 2026, the Group had a debit balance in the foreign currency translation reserve of SAR 52 million and a debit balance in the reserve for changes in the fair value of investments of SAR 133 million. These events or conditions, together with the other matters set forth in Note (2-2), indicate that material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern." The auditor also noted as an other matter that the comparative interim financial statements for the periods ended 30 June 2025 were reviewed by a previous auditor who issued a qualified conclusion, while the annual consolidated financial statements for the year ended 31 December 2025 were audited by the same previous auditor with an unmodified opinion. Additionally, certain comparative figures as of 1 January 2025 have been restated as disclosed in Note 16 of the interim condensed consolidated financial statements, and the weighted average number of shares used for earnings per share calculation has been adjusted to reflect the impact of the capital reduction in 2024 and the capital increase through a rights issue in 2025.

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