The company achieved (net loss) during the current period compared to a net profit achieved during the same period of the previous year, despite an increase in sales by 34.26%, a decrease in the provision for debts, a decrease in financing costs, and an increase in investment profits and other income, but in return: –
Cost of sales increased by 73.91% due to higher raw material prices and higher operating costs.
Selling and marketing expenses increased by 35.71% due to the increase in sales.
General and administrative expenses increased by 48.59% due to the increase in salaries and wages for the administrative cadres that were attracted to implement the company’s expansion plans.
An increase in the Zakat provision by 328.18% to increase the capital, and the value of the Zakat provision will gradually decrease as the company progresses in implementing its expansion plans and capital spending.
The basic and diluted share of profit and loss for the current period and the corresponding period of the previous year was calculated by dividing the net profit or loss for each period after zakat attributable to the shareholders of the company by the weighted average number of ordinary shares outstanding at the end of each period, where the weighted average shares for the current period amounted to 17,500,000 shares compared to 2,500,000 shares for the same period of the previous year.
During the current period and since the receipt of the proceeds of the offering and the capital increase from the beginning of 2022 , the company spent capital to implement its expansion plans, as it worked on the rehabilitation of iron and timber factories, adding and changing production lines, and purchased land to build a complex of warehouses and logistics services, which it will start building at the present time.
These developments will be announced, as non-current assets increased by 31,978 million riyals in the financial position by 102.40%, which will have a positive impact on the company and its results during the coming period and achieve sustainability and growth, and the Zakat provision will decrease significantly to return to normal limits after completing capital expenditure On assets that will be offset by the capital increase.