Zahrat Al Waha for Trading Co. announces its Interim Financial results for the Period Ending on 2025-09-30 ( Nine Months )

The decline in the company's sales for the current quarter compared to the corresponding quarter of the previous year is attributable to the following factors:

- The decline in the preform segment sales volume (tons) is attributable to the market’s shift towards lighter-weight products.

- The decline in the caps segment sales volume (tons) is attributable to the market’s shift towards short-neck, lighter-weight caps.

- The decline in selling prices for the preform and caps segments during the period is attributable to the decrease in raw material costs.

The increase in the company's net profit for the current quarter compared to the corresponding quarter of the previous year is attributable to the following factors:-

- The increase in gross profit for the period was primarily driven by a reduction in the cost of goods sold.

- Finance costs for the period decreased.

- Zakat expense for the period decreased.

- Reversal of SAR 919 thousand from the allowance for impairment losses on trade receivables due to the application of the expected credit loss model.

The decline in the company's sales for the current quarter compared to the previous quarter is attributable to the following factors:

- The sales volume of the preform segment (tons) decreased during the period.

- The sales volume of the Caps segment (tons) decreased during the period.

- The decline in selling prices for the preform and caps segments during the period is attributable to the decrease in raw material costs.

The increase in the company's net profit for the current quarter compared to the previous quarter is attributable to the following factors:

- Gross profit for the period increased, primarily due to a reduction in the cost of goods sold.

- Selling and distribution expenses for the period decreased.

- General and administrative expenses for the period decreased.

- Decrease in investments at fair value through profit or loss (FVTPL) losses.

- Reversal of SAR 919 thousand from the allowance for impairment losses on trade receivables due to the application of the expected credit loss model.

The reason for the decrease in the company's sales during the current period compared to the same period of the previous year is due to:

- The decline in the preform segment sales volume (tons) is attributable to the market’s shift towards lighter-weight products.

- The decline in the caps segment sales volume (tons) is attributable to the market’s shift towards short-neck, lighter-weight caps.

- The decline in selling prices for the preform and caps segments during the period is attributable to the decrease in raw material costs.

The reason for the decrease in the net profit during the current period compared to the same period of the previous year is due to:

- The decrease in gross profit was impacted by the increase in the cost of goods sold, particularly during the first quarter of the current year 2025.

- Increase in the allowance for impairment losses on trade receivables.

- Losses on investments measured at fair value through profit or loss.

- Increase in financing costs.

During the period ending 30 September 2025, the company has reclassified some comparative figures in the Statement of Cash Flows to align with the presentation of the current period. The reclassification had no impact on the profit or loss or equity.

The reclassification of purchase of investments at fair value through profit or loss and proceeds from the sale of investments at fair value through profit or loss from investment activities to operating activities.

The table below illustrates the impact on the cash flow statement for the period ended 30 September 2024:

Net cash flow generated from operating activities: Before Reclassification 81,489,170 – Reclassification 725,302 - After Reclassification 82,214,472

Net cash flow used in investing activities: Before Reclassification (8,828,043) – Reclassification (725,302) - After Reclassification (9,553,345).

1- The company achieved a net profit of 6.01 million riyals during the third quarter of 2025, the best performance so far this year, as a result of improved operational performance and reduced costs.

2- Although the results for the nine months ending September 30, 2025, still show losses, the improved results in the third quarter and disciplined cash flow management indicate a positive trajectory towards strengthening financial performance in the coming periods.

3- Net cash flows from operating activities amounted to 52.31 million riyals, reflecting the company's continued ability to generate cash from its core operations. Net cash flows from investing activities amounted to (12.64) million riyals, indicating an increase in investments during the period, which included capital expenditures in the new printing, packaging, and labeling segmentation. Net cash flows from financing activities amounted to (39.24) million riyals, reflecting a decrease in financing obligations and higher loan repayments compared to loan proceeds.

4- The balance of long-term loans will decrease by 79.13% on September 30, 2025, compared to its balance on December 31, 2024, as part of the company's plan to eliminate long-term loans that were used to finance capital expansions.

5- Basic earnings per share are calculated by dividing income for the period attributable to the Company’s ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. The diluted earnings per share are the same as the basic earnings per share, as the company has no diluted instruments.

6- We would like to draw the attention of our valued shareholders to the condensed interim Financial Statements for the nine months ended 30 September 2025, which will be available on the investor relations app for Zahrat Al Waha for Trading Co. smartphones and tablets, and through the company's website at the following link https://zaoasis.com/investors/financial-information after sending it to the competent authorities