On 2026-08-11 08:03:34 (Saudi Time), Tabuk Agricultural Development Co. announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

Sales/Revenue for the six-month period ending 30 June 2026 declined 94.683% YoY to SAR 1.50 million (converted from SAR 1,498,652 actual) from SAR 28.19 million (converted from SAR 28,187,932 actual), primarily driven by a sharp decline in agricultural production and the continued restructuring of the Company's operating processes, along with a decrease in inventory available for sale. Despite the revenue collapse, the net loss attributable to shareholders narrowed 16.399% YoY to SAR 20.96 million (converted from SAR 20,964,024 actual) from SAR 25.08 million (converted from SAR 25,076,551 actual), as the improvement was supported by lower cost of revenues, reduced selling and distribution expenses, decreased general and administrative expenses, the reversal of part of the provision for expected credit losses, and an increase in other income — net, partially offset by a decline in the Company's share of profits from associates accounted for using the equity method and losses recorded on the sale of part of those investments.

Quarter-on-Quarter Performance Drivers

QoQ revenue rose 52.515% to SAR 0.91 million (from SAR 0.59 million in the previous quarter), primarily driven by the reclassification of lease income from the grape project from other income to operating revenues. Net loss narrowed by 25.386% QoQ to SAR 8.96 million (from SAR 12.01 million), supported by lower cost of revenues, reduced gross loss, decreased selling and distribution expenses, higher net other income, and a reversal of part of the provision for expected credit losses, as well as lower losses from the sale of investments in associates accounted for under the equity method; these improvements were partially offset by higher general and administrative expenses, increased finance costs, and a decline in the company's share of profits from equity-accounted associates.

Other Items

Tabuk Agricultural Development Co.'s interim financial results for the six months ended 30 June 2026 were subject to a qualified auditor's conclusion. The basis for the qualified conclusion states that the auditors did not obtain the financial statements of one of the subsidiaries and were unable to perform alternative procedures to satisfy themselves as to the validity, presentation, and valuation of the investment in that subsidiary, and accordingly were unable to satisfy themselves as to the validity of the related balances within the consolidated Group's assets and liabilities as at 30 June 2026. In addition, the auditors highlighted a material uncertainty related to going concern, noting that the Group's total accumulated losses amounted to SAR 324 million as at 30 June 2026, representing 83% of its share capital, that current liabilities exceeded current assets resulting in a working capital deficit of SAR 180 million, and that the Group incurred negative cash flows from operating activities of SAR 26 million. Total shareholders' equity (after deducting minority equity) stood at SAR 66,410,366 as at 30 June 2026, compared to SAR 155,052,227 in the same period of the prior year, a decline of 57.169%. Accumulated losses reached SAR 324,331,519, representing 82.79% of the Company's capital. The Company has announced a proposed capital reduction from SAR 391,767,000 to SAR 76,524,600 — a reduction of 80.47% by cancelling 31,524,240 shares — which received Capital Market Authority approval on 23 July 2026, with an Extraordinary General Assembly scheduled for 31 August 2026 to address the accumulated losses. The main reasons cited by the Company for the accumulated losses include the decline in revenues resulting from decreased agricultural production and the restructuring of operating processes, the increase in cost of revenues relative to revenues realised, impairment in the value of inventory and biological assets, recognition of provisions for expected credit losses, and losses on the sale of part of the investments in associates accounted for using the equity method. Loss per share for the current period was SAR -0.54, compared to SAR -0.64 in the same period of the prior year.

Original announcement:

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