Amwaj's accumulated losses reach 46.69% of capital by 2025-end

Logo of Amwaj International Co.

Amwaj International Co. reported accumulated losses of SAR 28.02 million, equivalent to 46.69% of its SAR 60 million share capital, based on its audited 2025 financial statements.

In a statement to Tadawul, the company attributed the accumulated losses primarily to inventory discrepancies totaling SAR 28.67 million identified at one of its branches, which had been previously disclosed, as well as expected credit loss (ECL) provisions on certain trade receivables.

Amwaj International recognized provisions totaling SAR 47.12 million during 2025, the bulk of which are related to receivables associated with the branch where the incident occurred.

In addition, the company booked provisions for slow-moving and obsolete inventory, as well as impairment charges on certain inventory items.

Combined with other operating and financing factors, these items resulted in a net loss of SAR 87.80 million in 2025.

Amwaj International said it continues to pursue legal and regulatory measures to collect outstanding receivables and recover amounts related to the inventory discrepancies at the affected branch. It is also following up on the related litigation to safeguard the company’s rights and recover any amounts awarded.

Amwaj International has strengthened its credit management and collection policies, reassessed customer credit limits, and improved working capital and inventory management, the statement said.

The company has tightened controls over operating and administrative expenses and enhanced the efficiency of its branches and sales channels to reduce losses, improve profitability and cash flows, as well as preserve its financial position.

The board will continue to oversee the implementation of the corrective action plan, assess its impact on the company's financial results, and disclose any material developments in accordance with applicable regulations.

The company said that it will be subject to the Capital Market Authority's (CMA) procedures and instructions applicable to listed companies whose accumulated losses reach 20% or more of their capital.

It also said that part of the reported financial impact relates to accounting provisions and estimates recognized under International Financial Reporting Standards (IFRS) and therefore does not necessarily represent actual cash losses or cash outflows.

Amwaj International added that it has not recognized any asset or potential recovery related to claims arising from the inventory discrepancies, as the relevant legal proceedings remain ongoing and their outcome depends on uncertain future events.

Any amounts recovered will be recognized once the applicable accounting recognition criteria are met, which could positively impact the company's financial results in the period of recognition.

According to data available with Argaam, Amwaj International reported a net loss of SAR 87.8 million in 2025, against a net profit of SAR 6.4 million a year earlier.