March 28, 2025 - The company's sales dropped by SAR 5 million compared to the previous year, mainly due to higher sales costs, increased competition, foreign companies entering the local market, and disruptions in the external supply chain, leading to price reductions and lower revenues.
The company reported a net loss of SAR (3,105,912) compared to a profit last year, driven by the following reasons:
- A SAR 10 million increase in the cost of sales along with a drop in sales.
- Higher provisions, including expected credit losses and employee benefits, compared to the previous year.
- Increased operating expenses, mainly due to higher transportation costs from fuel price hikes in early 2024.
- Intense competition and foreign market entries, resulting in price reductions and decreased revenue.
- Disruptions in the supply chain from regulatory and procedural delays, impacting the availability of imported products and raising operational costs.
The company is focused on improving its financial performance through cost-cutting measures, operational restructuring, and efficiency improvements, aiming for sustainable growth and increased shareholder value.