Arabian Company for Agricultural and Industrial Investment announces its Interim Financial results for the Period Ending on 2025-06-30 ( Six Months ) | premargin

Arabian Company for Agricultural and Industrial Investment announces its Interim Financial results for the Period Ending on 2025-06-30 ( Six Months )

TadawulAugust 7, 2025View on exchange

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	331.9	300.7	10.375	336	-1.22
Gross Profit (Loss)	80.3	61.3	30.995	66.4	20.933
Operational Profit (Loss)	28.9	13.6	112.5	31.4	-7.961
Net profit (Loss)	18.6	7	165.714	21.2	-12.264
Total Comprehensive Income	18.6	7.8	138.461	21.2	-12.264
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	667.9	651	2.596
Gross Profit (Loss)	146.7	133.6	9.805
Operational Profit (Loss)	60.3	40.5	48.888
Net profit (Loss)	39.8	29	37.241
Total Comprehensive Income	39.8	29.8	33.557
Total Shareholders Equity (after Deducting Minority Equity)	485.4	466.4	4.073
Profit (Loss) per Share	1.3	1
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	-	-
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	Q2 2025 Revenue was up 10.4% YoY driven by higher sales volumes underpinned by network expansion and enlarging of customer base on B2B and B2C.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	As Entaj begins to realize the benefits of its prior strategic investments, the Company is seeing a significant recovery in margins, supported by efficiencies from livestock and production as well as streamlined supply‑chain processes. Procurement initiatives also helped drive significant savings in material costs like hatching eggs and feed. As such, Gross Profit for Q2 2025 was reported at SAR 80.3 million, a significant 31% increase from the same quarter last year, driven by the impact of Entaj’s cost optimizations. Q2 2025 Net Profit was up 165.7% YoY and was primarily driven by stronger gross profit performance, in addition to a notable increase in other income, mainly attributable to one-off gains from ongoing asset sales initiated in Q1 2025.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	Q2 2025 Revenue is almost flat QoQ (-1.2%), despite deepening price pressures amidst oversupply situation aided by network expansion and enlarging of customer base on B2B and B2C.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	Q2 2025 Net Profit was lower by 12.1% QoQ, due to significantly higher one-time gain in Q1. Excluding one-off, Q2 Net Profit is +200% QoQ demonstrating significant improvement in profitability due to cost optimization and productivity initiatives.
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is	H1 2025 Revenue of SAR 667.9 million was up 2.6% YoY, primarily driven by higher sales volumes underpinned by network expansion and enlarging of customer base on B2B and B2C.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	While Revenue exhibited positive growth on the back of demand growth and optimized product mix and sales execution, Cost of Sales remained relatively stable YoY as Entaj continued to realize cost savings from operational efficiencies and procurement initiatives. Resultantly, Gross Profit margin in H1 2025 shows a significant improvement of 150 basis points (bps) vs. H1 2024. The net profit margin improvement was primarily driven by stronger gross profit performance as well as one-off gains from asset sales.
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 figures of prior periods have been reclassified to comply with the presentation of the current period financial statements in line with the requirements of International Accounting Standards as reported under Note 18 of Interim condensed Financial Statements for Six Months Period Ended 30th June 2025. These reclassifications have no impact on previously reported net income, retained earnings or net assets.
Additional Information	Since 2023, the Company has made substantial investments to significantly enhance its production capacity to >200 million birds and >30 million hatching eggs annually, and its integrated processing plant now handles in excess of 400k live birds daily. Additionally, Entaj has accelerated consumer access and topline growth by doubling its Direct-Store-Delivery (‘DSD’) network to cover 12 Saudi cities in Q2 2025, up from six the previous year. Total CAPEX was SAR 20.3 million in H1 2025, representing 3.0% of revenue, vs. 7.6% of revenue in H1 2024, reflecting the completion of most capacity‑expansion projects. Remaining investments now focus on optimizing and maintaining processing, hatchery, and cold‑storage facilities, at much lower levels than witnessed in 2024.