Saudi Cable Company’s net profit attributable to shareholders fell 50.3% to SR18.3 million in the third quarter from SR36.8 million a year earlier.
Revenue fell 48.8% to SR20.0 million from SR39.0 million, the company said in a Tadawul filing on Thursday, Mubasher reported.
The company blamed lower revenue and higher costs, including raw material prices and operating expenses. It also cited logistics challenges linked to regional geopolitical conditions, which raised unabsorbed factory overheads.
Liquidity problems and lower advance payments from customers constrained working capital and weighed on revenue, the company said.
Net profit rose from SR2.5 million in the second quarter, helped by a 38% drop in operating expenses. Revenue fell 23.3% from the previous quarter.
Nine months
Nine-month net profit fell 56.4% to SR44.4 million from SR101.7 million. Revenue declined 39.7% to SR68.3 million from SR113.3 million.
The company recorded a gross loss of SR24.0 million and an operating loss of SR84.0 million in the nine months. Its profit came from its share of earnings at associate Madal.
Going concern
The company’s auditor said accumulated losses reached SR227 million as of September 30, equal to 340% of capital, CNBC Arabia reported. Current liabilities exceeded current assets by SR671.4 million.
The auditor said these conditions raise material uncertainty over the group’s ability to continue as a going concern. Management’s plans rely on assumptions including a rights issue and revenue growth from future orders, the report said.
The Riyadh Court of Appeal ruled on August 26 to overturn a decision ending the company’s financial reorganization procedure, returning it to that process.
