According to the company's statement on the Saudi Stock Exchange (Tadawul) website, the reason for recording a net loss this year compared to a net profit last year is due to: a decrease in revenues by 11%, which resulted from:
- A decrease in feed sales, mainly due to price pressures in the poultry sector.
- Sales in the elevator sector declined compared to the same period of the previous year due to delays in signing some contracts and delays in the Sukuk program related to improving working capital.
- Profit margins have decreased for most product groups in the feed and poultry sector due to some price pressures in the market, increased production costs and higher operating expenses.
- The shortage of working capital, which has affected the efficiency of operational processes, and the Board of Directors is working to find solutions to address the shortage of working capital in the company’s sectors.
- General and administrative expenses increased due to the companies acquired in the elevator sector during the second half of 2024, and work is underway to merge some departments to reduce costs and improve productivity during the coming period.
- Increased provisions for credit losses during the period.
- Higher financing expenses due to increased financing costs.
