Wafrah incurs SAR 20.1M losses in 9M 2025; Q3 at SAR 9.1M

Wafrah for Industry & Development Co. reported a net loss of SAR 20.1 million in the first nine months of 2025, compared to a profit of SAR 18.6 million in the year-earlier period.

The losses were attributed to a 23% year-on-year (YoY) decline in sales due to a seasonal increase in the raw potato harvest and a rise in imports of French fries. This led to a 34% decrease in both the company's French fries’ prices and sales volume.

Additionally, the entry of new competitors into the pasta market, compared to the same period last year, resulted in a 24% decrease in pasta sales volume.

These factors combined led to a 29% drop in sales at the pasta factory and a 35% fall at the vegetable factory, resulting in the overall decline in sales for 9M 2025, despite a 162% YoY increase in meat factory sales.

Meanwhile, the production costs-to-sales ratio grew 16% YoY, while selling and marketing expenses rose 31% as a result of restructuring the sales department, increasing marketing campaigns and discounts for customers, and an increase in general and administrative expenses by 14%.

The company also reported a 36% YoY decrease in the gains from the valuation of investments at fair value and realized losses on the company’s investment in vital assets amounting to SAR 2.4 million, and a decrease in other revenues by 59%.

This was despite a fall in credit loss expenses by 21% YoY, as well as a decrease in the provision for Zakat expense by 47%.

In Q3 2025, Wafrah turned to a loss of SAR 9.1 million, against a profit of SAR 1.84 million in Q3 2024.

On a sequential basis, the company narrowed its losses from SAR 15.47 million in Q2 2025.

Shareholders’ equity, no minority interest, reached SAR 218.94 million as of Sept. 30, 2025, down from SAR 251.10 million a year earlier.

Accumulated losses stood at SAR 12.61 million as of Sept. 30, 2025, representing 5.45% of capital.

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