Wafrah Reports SAR 46.76M Net Loss in Year 2025
WAFRAH 2100.SA | 22.21 | -0.72% |
On 2026-03-30 16:00:32 (Saudi Time), Wafrah for Industry and Development Co. announced its Annual financial results for the twelve months ended on December 31, 2025.
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 123,168,376 | 156,952,907 | -21.52 | ||
| Gross Profit (Loss) | 9,539,727 | 46,182,214 | -79.34 | ||
| Operational Profit (Loss) | -49,895,824 | 3,774,908 | - | ||
| Net Profit (Loss) Attributable to Shareholders of the Issuer | -46,762,474 | 4,707,765 | - | ||
| Total Comprehensive Income Attributable to Shareholders of the Issuer | -47,555,712 | 6,180,619 | - | ||
| Total Shareholders Equity (after Deducting Minority Equity) | 191,093,811 | 238,649,523 | -19.93 | ||
| Profit (Loss) per Share | -2.02 | 0.2 | |||
| All figures are in (Actual) Saudi Arabia, Riyals | |||||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | -39,629,904 | 17 | |
| All figures are in (Actual) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current year compared to the last year |
During 2025, the Company’s sales/revenue amounted to SAR 123.2 million compared to SAR 156.9 million in 2024, representing a decline of approximately 27%.
The decrease was primarily driven by lower sales volumes, mainly in the Vegetables segment, which remains the largest contributor to the Company’s revenue base. This was partially offset by relatively stable performance in the Pasta and Meat segments.
Overall, the year-on-year movement reflects changes in sales volumes and mix across segments, alongside prevailing market conditions affecting certain product categories |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is |
The Company reported a net loss attributable to shareholders of SAR (46.8) million in FY2025, compared to a net profit of SAR 4.7 million in FY2024.
This movement was primarily driven by lower revenue during the year particularly in the Vegetables segment which resulted in a significant decline in gross profit to SAR 9.5 million versus SAR 46.2 million in the prior year, negatively impacting margins.
In addition, operating performance was affected by higher/recognized operating charges. The Company recorded an operating loss of SAR (49.9) million compared to an operating profit of SAR 3.8 million in FY2024, mainly due to:
Higher operating expenses (selling & marketing and general & administrative), Increased expected credit losses (ECL), Inventory write-down, fair value losses on biological assets, and impairment of other receivables.
Partially offsetting the above, the Company recognized other income and fair value gains on investments through profit or loss, which mitigated part of the overall impact on net results. |
| Statement of the type of external auditor's report | Unmodified opinion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | The auditor highlighted Key Audit Matters relating to revenue recognition, expected credit loss on receivables, fair valuation of financial investments, and impairment assessment of property, plant and equipment.” |
| Reclassification of Comparison Items |
Certain comparative figures for the year ended 31 December 2024 have been restated and reclassified to comply with International Financial Reporting Standards (IFRS) as adopted in the Kingdom of Saudi Arabia. The restatement mainly relates to:
lease accounting adjustments in accordance with IFRS 16, and correction of prior period errors in line with IAS 8.
These adjustments had no impact on the Company’s cash flows; however, they affe |
| Additional Information |
During the year, the Company restated comparative figures of the year ended on 31 December 2024 to reflect adjustments relating to lease accounting under IFRS 16 and the correction of prior period errors in accordance with IAS 8. The restatement impact mainly resulted in:
Adjustment to retained earnings, Recognition/reclassification of lease liabilities, Adjustment to zakat provision.
Basic (loss)/earnings per share was calculated by dividing the net (loss)/profit attributable to the company's shareholders by the weighted average number of ordinary shares issued and outstanding 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.
Accordingly, (loss)/earnings per share was as follows: • 2025: (2.02) SAR • 2024: 0.20 SAR |
Year-on-Year Performance Drivers
Sales declined 21.52% YoY to SAR 123.17 million, primarily driven by lower sales volumes in the Vegetables segment, which is the company's largest revenue contributor. The company swung from a net profit of SAR 4.71 million to a net loss of SAR 46.76 million, caused by the revenue decline that reduced gross profit from SAR 46.18 million to SAR 9.54 million, combined with higher operating expenses, increased expected credit losses, inventory write-downs, and fair value losses on biological assets. These negative factors were only partially offset by other income and fair value gains on investments.
Quarter-on-Quarter Performance Drivers
Revenue declined 21.52% to SAR 123.17 million primarily due to lower sales volumes in the Vegetables segment, which is the company's largest revenue contributor. The company swung to a net loss of SAR 46.76 million from a SAR 4.71 million profit in the prior year, driven by the revenue decline that caused gross profit to plummet 79.34% to SAR 9.54 million. Operating performance deteriorated further due to higher operating expenses, increased expected credit losses, inventory write-downs, fair value losses on biological assets, and impairment of other receivables.
Other Items
Auditors issued an unmodified opinion with Key Audit Matters highlighted relating to revenue recognition, expected credit loss on receivables, fair valuation of financial investments, and impairment assessment of property, plant and equipment. Accumulated losses reached SAR 39.63 million, representing 17% of capital. The company restated comparative figures for 2024 to reflect lease accounting adjustments under IFRS 16 and correction of prior period errors in accordance with IAS 8, impacting retained earnings, lease liabilities recognition, and zakat provision adjustments.
Original announcement:
https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcements-details/?anId=93963&anCat=1&cs=2100&locale=arImportant 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.