National Metal Manufacturing and Casting Co. announces its Interim Financial results for the Period Ending on 2025-03-31 ( Three Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 70.14 | 62.33 | 12.53 | 55.6 | 26.151 |
| Gross Profit (Loss) | 5.81 | 3.11 | 86.816 | 8.34 | -30.335 |
| Operational Profit (Loss) | -1.8 | -3.64 | -50.549 | -0.27 | 566.666 |
| Net profit (Loss) | -3.19 | -7.39 | -56.833 | -12.18 | -73.809 |
| Total Comprehensive Income | -3.19 | -7.39 | -56.833 | -10.69 | -70.159 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Shareholders Equity (after Deducting Minority Equity) | 242.28 | 276.89 | -12.499 |
| Profit (Loss) per Share | -0.09 | -0.21 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | 2.21 | 0.62 | |
| Accumulated Losses | 111.72 | 31.56 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | Reasons for the increase in sales during the current quarter compare to the same quarter last year are increase sales of drawn wire products by about 28% due to improvement of the market demand for the products of this sector locally and in export markets. Sales of axles and casting products were decreased by about 13% due to decrease in the demand for boogies and spare parts. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | Reasons for the decrease in the losses during current quarter compare to the same quarter last year are due improvement in sales increase in reversal of expected credit losses, increase in other income and decrease in Zakat provision, in addition to decrease in losses from discontinued operations. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | Sales during current quarter increased compare to the sales during previous quarter due to improvement in sales of drawn wire products by about 38% as there is increase in the market demand for the products of this sector, in contrast there is decrease in sales of axels for trailers and spare parts. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | Reasons for the decrease in losses during current quarter compare to the previous quarter are improvement in sales, decrease in general and administration expenses and the reversal of expected credit losses and increase in other income and decrease in Zakat provision, in addition to decrease in losses from discontinued operations. |
| Statement of the type of external auditor's report | Unmodified conclusion |
| 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) | None |
| Reclassification of Comparison Items | Certain comparative figures have been reclassified to comply with the current period presentation of the interim condensed consolidated financial statements. |
| Additional Information | The accumulated losses reached SAR 111.72 Million, equivalent to 31.56% of the company’s paid up capital of SAR 354 Million after the approval of EGA on 10 Jun 2024 to transfer SAR 27.17 Million from statutory reserve to write-off part from the accumulated losses of SAR 96.89 Million as stated in the financial statement at 31 Dec 2023.
The the main reasons for the accumulated losses are the following: 1- Decrease in sales of the main products due to low demand in the local and export markets. 2- Competition in the local market from similar products imported from China. 3- Local manufacturers of P.C. Strand product (one of the main products of the company) entered in some exporting countries, negatively impacted the quantities exported to those countries. 4- High fluctuation in the price of high-carbon steel (the raw material for the main products of the company) and it is not produced locally. 5- Decrease in average selling price for some products, negatively impacted the profit margins.
The company came to know that the accumulated losses reached 20% or more from its paid up capital on 30/06/2023 and announced immediately , the company will apply the procedures and instructions applicable on companies listed in Saudi capital market whose accumulated losses reached 20% or more out of the capital. During 2024 board of director decided to discontinue production line of HWS due to lack of economic feasibility ( for more details on discontinued operations during quarter 1,2025 , refer to the note 16 in the interim condensed consolidated financial statements). |
| Attached Documents |  |
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