Sadr logs SAR 6.67M profit in 9M 2026, Q3 at SAR 1.32M

Sadr Logistics Co. reported a net profit of SAR 6.76 million for the first nine months of 2026, compared with a net loss of SAR 4.83 million a year earlier.

The company turned profitable mainly due to a 19% year-on-year (YoY) increase in revenue, driven by an 87% rise in logistics segment revenue to SAR 44.57 million, from SAR 23.9 million, supported by higher rental income from Sadr Park, which reached SAR 18.7 million, compared with SAR 2.08 million a year earlier, while wood segment revenue rose 33% to SAR 32.92 million, from SAR 24.81 million.

The improvement was further supported by a 95% YoY decline in the expected credit loss (ECL) allowance on trade receivables to SAR 480,000, from SAR 9.32 million a year ago, alongside the reversal of a SAR 27,000 provision for impairment of advances to suppliers, compared with an expense of SAR 190,000 a year earlier.

Operating profit reached SAR 12.83 million in 9M 2026, compared with an operating loss of SAR 2.91 million in the same period last year. However, the company faced a 14% decline in iron segment sales to SAR 41.38 million, from SAR 47.97 million, and a 71% drop in revenue from other segments. Net finance costs also increased to SAR 4.42 million, from SAR 1.44 million, while Zakat expenses rose 61% to SAR 1.51 million.

In Q3 2026, Sadr's net profit declined 43.6% YoY, mainly due to a 30% drop in iron segment sales to SAR 13.4 million, from SAR 19.11 million, and a 55% decrease in revenue from other segments. A 27% increase in cost of revenue contributed to a 14% decline in gross profit to SAR 10.26 million, from SAR 11.94 million. Higher selling and marketing expenses, finance costs, and Zakat expenses also weighed on the bottom line.

However, revenue rose 13% YoY in Q3 2026, supported by a 194% increase in wood segment revenue to SAR 13.96 million, from SAR 4.75 million, and a 21% rise in logistics segment revenue to SAR 11.83 million, from SAR 9.77 million.

The decline in the ECL allowance on trade receivables to SAR 27,000, from SAR 3.02 million, alongside reversals of expected credit losses on contract assets and provisions for impairment of advances to suppliers, totaling SAR 650,000, also supported operating profit, which rose 23% to SAR 3.45 million, from SAR 2.8 million.

The company's profit declined 43% quarter-on-quarter (QoQ) to SAR 1.32 million in Q2 2026, mainly due to a 29% drop in logistics segment revenue to SAR 11.83 million, from SAR 16.56 million, and a 79% decline in revenue from other segments to SAR 130,000. Higher cost of revenue and selling and marketing expenses also weighed on profitability, driving gross profit down 10% to SAR 10.26 million, from SAR 11.38 million.

Meanwhile, revenue edged up 1% QoQ to SAR 39.32 million, from SAR 38.9 million, supported by a 46% increase in wood segment revenue to SAR 13.96 million and a 10% rise in iron segment sales to SAR 13.4 million.

Total shareholders' equity, with no minority interest, stood at SAR 171.36 million as of Sept. 30, 2026, compared with SAR 162.4 million a year earlier.

Accumulated losses reached SAR 4.36 million, representing 2.49% of the company's capital.

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