Saudi Chemical Holding Co. reported a net profit of SAR 83.6 million for the first nine months of 2019, a 14.4 percent year-on-year decline.
The decline is attributed to launching commercial production of two production lines of AJA's plant (subsidiary company) and charging all costs to income statement for the period. The costs are expected to be covered gradually through the increase in sales.
The company also cited other reasons for the net profit decline including the increase in operational expenses, mainly relating to pharmaceutical sector due to the increase in sales of distributing medicines, as well as higher finance costs and zakat provision.
The company reported a net profit of SAR 13.4 million for Q3 2019, a 0.74 percent year-on-year drop.
When compared to the previous quarter, net profit fell 56.6 percent due to lower sales and higher provision for doubtful debts, finance costs and zakat provision.