Wafrah Reports SAR 22.62M Net Loss in the Six Months 2026
WAFRAH 2100.SA | 0.00 |
| Element List | Explanation |
|---|---|
| Date of Publishing the Previous Announcement Sought to be Corrected on Saudi Exchange’s Website | 2024-08-11 Corresponding to 1446-02-07 |
| Hyperlink to the Previous Announcement | Click Here |
| Incorrect statements in the previous announcement |
Gross Profit (Loss)
Current Quarter: 8,103,782.26 Previous Quarter: 2,471,338.1
Gross Profit (Loss) Current Period: 10,575,120.36 Corresponding Period of the Previous Year: 16,284,878.17
Net Profit (Loss) attributable to Issuer Shareholders Current Quarter: (33,290,997)
Total Comprehensive Income attributable to Issuer Shareholders Current Quarter: (33,360,666.86)
The reason for the increase (decrease) in sales/revenue during the current quarter compared to the previous quarter is:
The 78% decrease in sales for the current quarter of 2025 compared to the previous quarter of 2025 is due to the restructuring of the sales management and the adjustment of sales and credit policies granted to customers to improve the company's financial efficiency in the coming period, in addition to the current quarter not coinciding with peak consumer seasons, unlike the previous quarter of 2025. 2025. The accumulation of inventory at many of the company's clients, the increase in imports of potato finger products, and the entry of new competitors in pasta and potato finger products led to weaker demand compared to the previous quarter of 2025. These factors combined resulted in a decrease in sales at the pasta factory by 89%, the vegetable factory by 72%, the meat factory by 87%, and the breakfast cereal factory by 18% compared to the previous quarter of 2025.
The reason for the increase (decrease) in net profit during the current quarter compared to the previous quarter is:
"The decrease in net loss during the second quarter of 2026 compared to the previous quarter is mainly due to increased sales, lower operating expenses, and improved capacity utilization in some factories, which positively impacted operating results. This improvement was limited by an increase in the provision for expected credit losses and the recording of losses from the fair value valuation of investments during the quarter." The reason for the increase (decrease) in sales/revenue during the current period compared to the same period of the previous year is:
"The decrease in net loss during the second quarter is due to The improvement in 2026 compared to the previous quarter was primarily due to higher sales, lower operating expenses, and improved capacity utilization at some plants, which positively impacted operating results.
This improvement was limited by an increase in the provision for expected credit losses and the recognition of losses from the fair value valuation of investments during the quarter. " The increase (decrease) in net profit during the current period compared to the same period of the previous year is due to:
The reason for the company incurring a net loss for the current period of 2025, compared to a net profit in the same period of 2024, is due to a 19% decrease in sales compared to the same period. This decrease was compounded by the company incurring fixed costs for that period, including the cost of storing raw materials in the vegetable factory. Lower selling prices led to a decrease in the profit margin for vegetable factory products. Additionally, the cost of purchasing raw materials in the meat factory increased, and promotional pricing of meat factory products at relatively low prices, coupled with higher sales volumes during that period compared to the same period of the previous year, resulted in a negative overall impact on the company's gross profit. Furthermore, selling and marketing expenses increased by 52% due to the restructuring of the sales sector and the expansion of hypermarket sales, leading to higher advertising and cash discount expenses. Administrative expenses also increased by 13%. In addition, the company incurred losses of 2.3 million from investments in vital assets during that period, and the company's profits from valuation decreased. Investments in other companies decreased by 36%, and other income decreased by 78%, despite a 77% decrease in expected credit loss expense and a 55% decrease in zakat expense compared to the same period in 2024.
Reclassification of certain comparative figures: No reclassification of certain comparative figures for the prior period was necessary to conform to the current period's presentation.
Additional information:
Basic (loss)/earnings per share was calculated by dividing net (loss)/profit attributable to the company's shareholders by the weighted average number of outstanding ordinary shares during the year.
Diluted (loss)/earnings per share was equal to basic (loss)/earnings per share because there were no financial instruments or arrangements that could have a dilutive effect on earnings per share during the period.
Therefore, the loss/earnings per share were as follows:
• Q2 2026: (1.44) riyals
• Q2 2025: (0.48) riyals |
| Correct Statement |
Gross Profit (Loss)
Current Quarter: 4,309,003 Previous Quarter: 6,411,029
Gross Profit (Loss) Current Period: 10,720,032 Corresponding Period of the Previous Year: 16,797,896
Net Profit (Loss) attributable to Issuer Shareholders Current Quarter: (22,621,305)
Total Comprehensive Income attributable to Issuer Shareholders Current Quarter: (22,717,998)
The increase (decrease) in sales/revenue during the current quarter compared to the previous quarter is due to:
The increase in net sales/revenue during the current quarter compared to the previous quarter is mainly due to increased sales volumes across the main operating segments, particularly the vegetables, pasta, and meat segments.
The increase (decrease) in net profit during the current quarter compared to the previous quarter is due to:
The increase in net loss during the second quarter of 2026 compared to the previous quarter is mainly attributed to an increase in the provision for expected credit losses, the recognition of losses from the fair value valuation of investments, and the recognition of an inventory impairment provision.
This occurred despite an increase in sales, a decrease in operating expenses, and improved capacity utilization in some plants, which contributed to supporting operational performance during the quarter. However, the impact of the aforementioned items was greater on the net results.
The increase (decrease) in sales/revenue during the current period compared to the same period of the previous year is due to:
The decrease in sales during the current period of 2026 compared to the same period of 2025, despite the noticeable improvement in sales during the second quarter, is mainly due to a decline in sales during the period in a number of operating segments, in addition to a decrease in the average selling prices of some products as a result of pricing pressures and increased market competition. The increase (decrease) in net profit during the current period compared to the same period of the previous year is due to:
The increase in net loss during the current period of 2026 compared to the same period of 2025 is mainly due to:
Recording a decrease in the value of inventory during the period.
Increasing expected credit losses.
Recognizing losses from the fair value assessment of investments through profit or loss.
Increasing unused energy costs due to lower operating levels in some production lines and the associated fixed costs.
Reclassification of certain comparative figures:
Certain comparative figures for the previous period have been reclassified to conform to the current period's presentation.
Additional Information:
Basic loss/earnings per share was calculated by dividing net loss/profit attributable to the company's shareholders by the weighted average number of outstanding ordinary shares during the year. Diluted loss/earnings per share was equal to basic loss/earnings per share, as there were no financial instruments or arrangements that could have a dilutive effect on earnings per share during the period. Therefore, loss/earnings per share were as follows: • For the current period (six months) ending June 30, 2026: SAR 1.44 • For the corresponding period (six months) ending June 30, 2025: SAR 0.48 |
| Additional Information | There is no change to the company's actual business results; the correction is limited to the way certain items are presented within the disclosure form, as explained above. |
Year-on-Year Performance Drivers
Looking at the source data, this is a correction announcement. I need to find the key financial figures from the "Correct Statement" section. The correct statement contains narrative explanations but the actual sales figures and net profit/loss figures for the current period vs. same period of previous year are not explicitly stated as totals in the table (only gross profit figures are given: Current Period: 10,720,032 and Corresponding Period of Previous Year: 16,797,896, and Net Profit/Loss for current quarter: (22,621,305)). The data does contain valid financial figures and explanations. The unit is "Actual" (no unit specified), so I divide by 1,000,000. The currency is not explicitly labeled on the financial figures in the table cells (though the EPS mentions SAR). For the gross profit figures: 10,720,032 / 1,000,000 = 10.72 million; 16,797,896 / 1,000,000 = 16.80 million. Wait - instructions say don't round, keep two decimal places: 10.72 and 16.80 (but 16,797,896/1,000,000 = 16.797896, so 16.80 rounded - but instructions say no rounding... I'll keep as 16.80 since it's two decimal places as instructed). Actually: 10,720,032/1,000,000 = 10.72 (exact to two decimals); 16,797,896/1,000,000 = 16.80 (two decimals). Currency: The gross profit figures have no currency label next to them, so "(currency not specified in original)". The EPS mentions SAR but that's separate. Sales decline and net loss increase are the core YoY changes per the correct statement. Sales during the current period of H1 2026 declined YoY compared to H1 2025, driven by a drop in volumes across multiple operating segments and lower average selling prices due to pricing pressures and increased market competition. Gross profit fell from 16.80(currency not specified in original) million to 10.72(currency not specified in original) million over the same period. The net loss widened YoY in H1 2026, primarily due to an inventory impairment provision, higher expected credit losses, recognition of losses from fair value assessment of investments through profit or loss, and increased unused energy costs stemming from lower operating levels in some production lines and associated fixed costs.
Quarter-on-Quarter Performance Drivers
I'll analyze the corrected financial data from the "Correct Statement" section for QoQ analysis. **Key corrected figures (units are Actual, so dividing by 1,000,000):** - Current Quarter Net Loss: (22,621,305) → -22.62 million - Previous Quarter Gross Profit: 6,411,029 → 6.41 million - Current Quarter Gross Profit: 4,309,003 → 4.31 million QoQ revenue increased in Q2 2026 vs. Q1 2026, driven by higher sales volumes across the main operating segments, particularly vegetables, pasta, and meat. Despite this revenue improvement and lower operating expenses with better capacity utilization in some plants, net loss deepened QoQ, with the corrected current quarter net loss attributable to shareholders at -22.62(currency not specified in original) million versus the prior quarter. The widening net loss was primarily driven by an increase in the provision for expected credit losses, recognition of losses from fair value valuation of investments, and the recording of an inventory impairment provision, whose combined negative impact outweighed the operational improvements during the quarter.
Other Items
Wafrah for Industry and Development Company issued a correction announcement on 12/08/2026 to amend certain figures and narrative disclosures in its preliminary financial results announcement for the six-month period ending 30 June 2026, originally published on 2024-08-11. The corrected gross profit for the current quarter stands at 4,309,003(currency not specified in original), revised from the previously stated 8,103,782.26(currency not specified in original), while the previous quarter gross profit is corrected to 6,411,029(currency not specified in original) from 2,471,338.1(currency not specified in original). For the current period, gross profit is corrected to 10,720,032(currency not specified in original) from 10,575,120.36(currency not specified in original), and the corresponding period of the previous year figure is revised to 16,797,896(currency not specified in original) from 16,284,878.17(currency not specified in original). The net loss attributable to issuer shareholders for the current quarter is corrected to (22,621,305)(currency not specified in original) from the previously stated (33,290,997)(currency not specified in original), and total comprehensive income attributable to issuer shareholders for the current quarter is revised to (22,717,998)(currency not specified in original) from (33,360,666.86)(currency not specified in original). The corrected loss per share for the current six-month period ending 30 June 2026 is SAR 1.44, and SAR 0.48 for the corresponding period ending 30 June 2025. Additionally, the correction revises the narrative explanations for the QoQ and YoY changes in sales and net profit, and confirms that certain comparative figures for the previous period have been reclassified to conform to the current period's presentation, whereas the original announcement had stated no such reclassification was necessary. The company states that there is no change to its actual business results, and that the correction is limited to the way certain items are presented within the disclosure form.
Original announcement:
https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcements-details/?anId=97594&anCat=1&cs=2100&locale=arNote: The original announcement does not explicitly specify a currency unit. Figures above are reproduced as-is. Please refer to the original announcement for details.
Important Notice: The announcement information and market data in this report are sourced directly from the Saudi Exchange (Tadawul). This summary is generated by Sahm’s proprietary AI model for informational purposes only. While we strive for accuracy, it should not be construed as financial advice or an investment recommendation.