Riyad September 11 2022: National Fertilizer Company profitability drop 23.2 percent in the first of current calendar year when compared with the same period last year, according to company filling to the exchange.
Company posted net profit of SAR 9.4 million in first half 2022 when compared with SAR 12.2 million in first half of 2021. The company revenue increased by 12.4 percent in the same period to SAR 97.8 million.
The reason for the (decrease) in net profit during the current period compared to the same period of the previous year is due to the increase in raw materials prices during the first quarter in the current period compared to prices in the same period despite the growth in sales during the current period, but the increase in raw materials prices has significantly affected the net profit.
"Sales prices for the company have been gradually adjusted during the current period starting from April 2022 in order to meet the rising prices of raw materials, and prices have been raised by an average of 65% for fertilizer products." says Chairman Fahad Mohammed Barjas AlNasser.
in an additional information company stated, "Some figures for the comparative period have been re-presented to conform to the classification of the current period figures based on a reassessment of determining control over Jal Al-Sahraa Company for Agricultural Production and has ceased consolidating the Financial statements of Jal Al-Sahra for Agriculture Production and it was considered this as a joint arrangement, and the investment in Jal Al-Sahraa Company for Agricultural Production was recognized as an investment in a "joint venture" retroactively . Accordingly, the Company has applied the equity method retrospectively to account for investment in Jal Al-sahra for Agricultural Production Company which was previously accounted for as subsidiary."
About the Company
National Fertilizer Company Ltd-NAFKAL is involved in detergents, chemical fertilizers and plastics production and manufacturing and is a closed joint stock company pursuant to the ministerial resolution No. (Q/196) dated 15/06/1430H (corresponding to 08/06/2009) and under commercial registration No. (1010063903) dated 24/02/1407H (corresponding 28/10/1986) issued in the city of Riyadh, with a current a fully paid-in capital of (SAR 50,000,000) and divided into (5,000,000) fully paid common shares, with a value of (SAR 10) for each share.