Saudi Industrial Development Company (SIDC)announces its Interim Consolidated Financial Results for the Period Ending on 30/09/2025 (Nine Months) | premargin

Saudi Industrial Development Company (SIDC)announces its Interim Consolidated Financial Results for the Period Ending on 30/09/2025 (Nine Months)

TadawulOctober 26, 2025View on exchange

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	24.05	27.59	-12.83	28.07	-14.321
Gross Profit (Loss)	3.86	5.76	-32.986	4.93	-21.703
Operational Profit (Loss)	-7.75	-9.49	-18.335	-7.34	5.585
Net profit (Loss)	-8.05	-11.43	-29.571	-8.3	-3.012
Total Comprehensive Income	-6.97	-20.78	-66.458	-10.34	-32.591
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	76.28	99.57	-23.39
Gross Profit (Loss)	11.81	21.76	-45.726
Operational Profit (Loss)	-24.3	-20.65	17.675
Net profit (Loss)	-25.79	-20.07	28.5
Total Comprehensive Income	-26.69	-39.05	-31.651
Total Shareholders Equity (after Deducting Minority Equity)	47.07	72.31	-34.905
Profit (Loss) per Share	-1.91	-1.49
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	-	-
Accumulated Losses	35.97	26.64
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	The reason for the decrease in sales/revenue is due to a decrease in sales of the mattress and foam segment.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The reason for the increase in net profit is due to an increase in operating profit due to a decrease in operating expenses.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	The reason for the increase in sales/revenue is due to a decrease in sales of the mattress and foam segment.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	The reason for the increase in net profit is due to due to an increase in operating profit due to an increase in other revenues and a decrease in operating expenses.
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is	The reason for the decrease in sales/revenue is due to a decrease in sales of the mattress and foam segment.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	The decrease in net profit is due to a decrease in operating profit due to a decrease in gross profit resulting from a decrease in sales.
Statement of the type of external auditor's report	Conservation
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)	Qualified conclusion: During the year ended December 31, 2023, the Company transferred the balance of the fair value reserve related to financial assets measured at fair value through other comprehensive income, pertaining to Arabian Industrial Fibers Company – Ibn Rushd. An amount of SAR 132,900,000 was reclassified to accumulated losses prior to derecognizing the related asset. This accounting treatment is not in accordance with the requirements of IFRS 9 Financial Instruments and IAS 1 Presentation of Financial Statements, as adopted and interpreted by the Saudi Organization for Chartered and Professional Accountants (‘SOCPA’). Emphasis of matter: We draw attention to note (1) to the accompanying interim condensed consolidated financial statements, which indicates that the Group's accumulated losses amounted to SAR 267.7 million as of December 31, 2023. The Board of Directors recommended capital reduction and accumulated losses absorption; accordingly, the extraordinary general assembly meeting held on September 19, 2024, approved a reduction in the Company's capital by SAR 265 million to absorb the accumulated losses. Consequently, 26.5 million shares were canceled, representing a reduction of 0.6625 shares per share as part of the capital restructuring. Our conclusion has not been modified in respect to this matter.
Reclassification of Comparison Items	The basic and diluted loss per share attributable to the equity holders of the Parent Company for the nine-month period ended 30 September 2024 has been restated; see Note (12).
Additional Information	During the year ended 31 December 2023, the Company transferred the cumulative fair value reserve related to its investment in the Arab Industrial Fibers Company – Ibn Rushd, recognized in Other Comprehensive Income (OCI), to accumulated losses, based on International Financial Reporting Standard (IFRS) 9 (Financial Instruments), which states that amounts presented in OCI shall not subsequently be reclassified to profit or loss. Nevertheless, the Saudi Organization for Chartered and Professional Accountants (SOCPA) issued Guidance Opinion No. 172 dated 07 April 2025, which states: “Although the Standard does not provide direct guidance on the timing of the transfer, taking into account the requirements of the adopted international standards, transferring that reserve before derecognizing the related asset does not comply with those requirements.” The Company has conducted studies and sought professional consultations regarding the accounting treatment, including benchmarking against similar treatments adopted by other companies holding the same investment. Based on the available information, the Company concluded that the decline in the value of the investment in Ibn Rushd is material and permanent. The Company will re-evaluate this treatment, or amend it as appropriate, when additional information becomes available or upon completion of subsequent accounting procedures, in a manner that enhances the alignment of the presentation with the opinion issued by SOCPA. The announcement of the interim financial results for the 3rd, Quarter of the year 2025 concurs with the company’s accumulated losses as of September 30,2025, amounting to (35.97) million Saudi Riyals, which represents (26.64%) of its capital. The main reasons for these accumulated losses are due to an increase in net operating losses resulting from decrease in gross operating profit resulting from decrease in sales. It’s to be noted that procedures and regulations set forth by the Saudi Capital Market Authority for companies listed on the Saudi Financial Market with accumulated losses that fall between (20%) and less than (35%) of their capital will be implemented.