On 2026-07-27 15:44:57 (Saudi Time), Zahrat Al Waha for Trading Co. 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 June 30, 2026, sales/revenue increased 20.309% YoY to SAR 30.98 million (309,795,058 actual ÷ 1,000,000 = SAR 309.80 million) from SAR 257.50 million, driven by increased sales volume particularly in the printing and packaging segments (shrink and stretch film), as well as higher selling prices in the plastic bottle preform and plastic cap segments. Net profit attributable to shareholders surged to SAR 30.56 million from a net loss of SAR 7.88 million in the same period of the prior year, primarily because sales grew 20.31% while cost of sales rose only 7.88%, resulting in a 190.17% increase in gross profit to SAR 50.95 million, alongside a 13.64% decrease in selling and distribution expenses, an increase in other income (including recovery of zakat for 2019–2020 amounting to SAR 3.36 million and customs duties recovery of SAR 1.52 million), an 11.06% decrease in finance costs, and the conversion of prior-year fair value investment losses into profits during the current period.

Quarter-on-Quarter Performance Drivers

QoQ revenue surged 40.46% to SAR 180.96 million (vs. SAR 128.83 million prior quarter), driven by higher sales volume and higher selling prices. Net profit attributable to shareholders jumped 151.56% QoQ to SAR 21.86 million (vs. SAR 8.69 million), primarily because sales grew 40.46% while cost of sales rose only 27.49%, resulting in a 138.52% increase in gross profit.

Other Items

The external auditor issued an unmodified conclusion with no additional comments in any other matter, conservation, notice, disclaimer of opinion, or adverse opinion paragraphs. The company noted that despite current geopolitical and security developments and increased instability in regional markets, no adjustments were made to balances or disclosures, and there are no negative indicators affecting the company's ability to continue its business operations in accordance with the going concern principle. Total shareholders' equity (after deducting minority equity) stood at SAR 321,233,089 as of the current period, up 14.749% from SAR 279,943,839 in the same period of the prior year. Earnings per share for the current period were SAR 0.136, compared to a loss per share of SAR 0.035 in the same period of the prior year. Inventory balance decreased from SAR 96.29 million on December 31, 2025, to SAR 75.85 million on June 30, 2026, due to an increase in sales volume. The company also disclosed a reclassification of comparative figures, whereby finance costs paid were reclassified from financing activities to operating activities, restating the period ended June 30, 2025: net cash flow from operating activities changed from 63,191,828(currency not specified in original) to 59,245,567(currency not specified in original), and net cash flow used in financing activities changed from (60,018,463)(currency not specified in original) to (56,072,202)(currency not specified in original), with no impact on profit, loss, or equity. The company noted that IFRS 18 will replace IAS 1 for annual periods commencing on or after January 1, 2027, and is currently assessing the expected impact of its initial application.

Original announcement:

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