Mufeed incurs SAR 27.3 M loss in H1 2026

Mufeed Co. incurred a net loss of SAR 27.3 million in H1 2026, versus a net profit of SAR 16.3 million in H1 2025.

The company said the shift to losses was mainly attributed to a 66% year-on-year (YoY) decline in revenue to SAR 26.57 million in H1 2026, compared with SAR 78.08 million.

The lower revenue was mainly due to the nature and cyclicality of events and exhibition projects, as well as fewer tenders and project awards during the period. This was primarily driven by the event management activity, which declined by SAR 39.135 million, and production and manufacturing contracting (-SAR 9.81 million), in addition to a SAR 2.56 million decline in other activities.

However, this was partially offset by a SAR 19.15 million decrease in the cost of revenue, resulting in a gross loss of SAR 737,400 in H1 2026, compared with a gross profit of SAR 31.63 million, as a significant portion of operating expenses are fixed in nature.

The company also recognized SAR 14.2 million in direct costs incurred on unapproved work under the disputed Aseer project, which were included under other expenses, as management concluded that there was insufficient evidence to recognize these costs as an asset (Note 22).

Financing costs increased by SAR 565,810, while Zakat expense increased by SAR 527,780. These increases were partially offset by a SAR 1.15 million decrease in general and administrative (G&A) expenses, the reversal of an impairment loss on trade receivables of SAR 258,550, compared with the recognition of an impairment loss of SAR 1.74 million in the previous period, as well as an SAR 870,000 increase in other income from returns on Murabaha deposits.

Sequentially, the company turned to a loss versus a profit of SAR 10.14 million in H2 2025.

Total shareholders’ equity, with no minority interest, stood at SAR 127.89 million by June 30, 2026, compared to SAR 146.23 million a year earlier.

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