The profits of Zahrat Al Waha Trading Company decreased by 28.4%, as the net profit amounted to 40.6 million riyals for the year 2020, compared to 56.635 million riyals in 2019
According to Arabiyanet, the company said in a statement that this decline is due to the decrease in sales due to the decrease in average selling prices by 17.52% affected by the decrease in the prices of the main raw materials, which are the main component in Determine sales prices.
Also, selling and distribution expenses increased by 5.82% due to the increase in transport expenses by 6.75%.
The decline in profits was also caused by an increase in the zakat provision expense by 82.20% due to the payment of the differences in zakat assessments for the years from 2016 to 2018.
The company said that the balance of long-term loans on December 31, 2020 amounted to 87.9 million riyals compared to 128.79 million riyals, a decrease of 31.75%, as the company relies on financing most capital expansions on self-financing by the company.
In a separate statement, the company said that the board of directors proposed to distribute 15 million riyals to shareholders for last year's profits, and that the earnings per share would reach one riyal.
