ARTEX deepens 2024 loss to SAR 144.5M; Q4 at SAR 132M on provision allocation

ARTEX Industrial Investment Co. deepened its net losses to SAR 144.5 million in 2024, compared to SAR 74.8 million a year ago.

The wider losses were mainly due to the allocation of a SAR 100 million provision for the warranty liability of a Saudi Industrial Development Fund (SIDF) loan to Al Reef Sugar Refining Co. (RESRECO).

The company’s share of this guarantee, given its 15% stake, amounted to SAR 100 million.

RESRECO had defaulted on loan repayments in previous years, but SIDF did not formally call on the guarantee until Nov. 17, 2024. In response, and following Tadawul disclosure, the company booked a provision under IFRS 9, reflecting recent developments that were previously unclear.

Offsetting these pressures, ARTEX’s 2024 revenues rose 8% year-on-year (YoY), primarily driven by an 11% YoY increase in domestic sales, with export sales also up 2% YoY.

The company posted a gross profit of SAR 10.2 million in 2024, reversing a SAR 10.85 million gross loss in 2023. The turnaround was fueled by stronger sales, better raw material pricing, improved margins, and cost-control measures.

The Q4 2024 net loss widened to SAR 132 million, from SAR 10.73 million in the year-earlier period.

On a sequential basis, the three-month losses deepened from SAR 4.83 million in Q3 2024.

Total shareholders’ equity, no minority interest, shrank to SAR 1.03 billion by Dec. 31, 2024, compared to SAR 1.20 billion a year ago.

As of Dec. 31, 2024, ARTEX’s accumulated losses totaled SAR 3.16 million, accounting for 0.39% of capital.

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