According to Arabia Net, the company said that the reason for recording losses during the current period compared to the same period in the previous year is due to:
- The decrease in selling prices as a result of the intense competition, despite the increase in sales quantities during the current year compared to the previous year, as sales for the current year increased by 6.3% from the previous year.
- Operating costs, selling and marketing expenses, and general and administrative expenses also increased despite the decrease in the provision for debts, financing costs, the provision for Zakat, and higher investment income, as did other income.
- Operating costs were affected by the company's formation of a provision for inventory, as iron ore prices have increased in the recent period, and government costs have increased compared to last year, which is expected to decrease during subsequent periods in light of government decisions regarding industrial facilities.
