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Wafrah Industries Posts SAR 15.5 Million Q2 Loss as Revenue Plunges 61% During Strategic Overhaul
WAFRAH -0.18%
WAFRAH 2100.SA | 21.63 | -0.18% |
According to the Tadawul announcement dated July 20, 2025, Wafrah for Industry and Development Co.(2100.SA) (WAFRAH) reported challenging financial results for the six-month period ending June 30, 2025, as the company undergoes strategic restructuring of its operations.
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 12,439,356 | 31,762,215 | -60.835 | 57,493,427 | -78.363 |
| Gross Profit (Loss) | -2,532,012 | 9,310,867 | - | 16,476,295 | - |
| Operational Profit (Loss) | -17,858,876 | -998,460 | 1,688.642 | 4,742,496 | - |
| Net profit (Loss) | -15,472,125 | 6,094,819 | - | 4,473,830 | - |
| Total Comprehensive Income | -15,500,402 | 6,091,128 | - | 4,478,215 | - |
| All figures are in (Actual) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 69,932,783 | 85,867,906 | -18.557 |
| Gross Profit (Loss) | 13,944,283 | 31,189,910 | -55.292 |
| Operational Profit (Loss) | -13,116,380 | 8,686,560 | - |
| Net profit (Loss) | -10,998,295 | 16,737,895 | - |
| Total Comprehensive Income | -11,022,187 | 16,731,041 | - |
| Total Shareholders Equity (after Deducting Minority Equity) | 227,959,544 | 249,199,945 | -8.523 |
| Profit (Loss) per Share | -0.48 | 0.72 | |
| All figures are in (Actual) Saudi Arabia, Riyals | |||
The company experienced substantial declines across all key metrics during the second quarter of 2025. Revenue plummeted 60.83% to SAR 12.44 million compared to SAR 31.76 million in the same quarter of 2024. The company recorded a net loss of SAR 15.47 million, a sharp reversal from the SAR 6.09 million profit achieved in the corresponding period last year. Compared to the previous quarter, revenue declined 78.36% from SAR 57.49 million.
For the six-month period, WAFRAH's revenue decreased 18.56% to SAR 69.93 million from SAR 85.87 million in the first half of 2024. The company reported a net loss of SAR 11.00 million compared to a profit of SAR 16.74 million in the same period last year. Loss per share reached SAR 0.48 compared to earnings per share of SAR 0.72 in the previous year.
Total shareholders' equity declined 8.52% to SAR 227.96 million from SAR 249.20 million, reflecting the impact of operational challenges on the company's financial position.
According to the Tadawul announcement, the revenue decline was primarily attributed to the restructuring of sales management and adjustments to sales and credit policies aimed at enhancing financial efficiency. The company also faced external pressures including abundant raw potato crops, increased foreign imports of frozen potato products, and new market competitors, which collectively led to decreased prices and sales volumes.
The shift to losses resulted from the company bearing fixed costs while experiencing reduced sales, a 44% increase in fuel costs at the beginning of 2025, higher production and shipping expenses, and increased selling and marketing costs due to enhanced customer discounts and sales restructuring. The company also incurred losses from investments in vital assets due to adverse weather conditions in the Tabuk region.
Factory-specific performance showed significant declines: the vegetables factory experienced a 56% decrease in sales, the pasta factory declined 82%, and the meat factory dropped 40% compared to the same quarter in 2024. However, the meat factory showed resilience in the six-month period with a 106% increase in sales compared to the same period last year.
The external auditor issued an unmodified conclusion with no additional comments or qualifications noted in the report.
