National Metal Manufacturing and Casting Co. announces its Interim Financial results for the Period Ending on 2025-09-30 ( Nine Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 46.21 | 68.15 | -32.193 | 63.87 | -27.649 |
| Gross Profit (Loss) | 2.89 | 1.43 | 102.097 | 5.96 | -51.51 |
| Operational Profit (Loss) | -4.22 | -6.65 | -36.541 | -4.1 | 2.926 |
| Net profit (Loss) | -5.64 | -8.94 | -36.912 | -5.4 | 4.444 |
| Total Comprehensive Income | -5.64 | -8.94 | -36.912 | -5.4 | 4.444 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 180.32 | 187.51 | -3.834 |
| Gross Profit (Loss) | 14.66 | 5.56 | 163.669 |
| Operational Profit (Loss) | -10.12 | -18.17 | -44.303 |
| Net profit (Loss) | -14.24 | -28.12 | -49.359 |
| Total Comprehensive Income | -14.24 | -28.12 | -49.359 |
| Total Shareholders Equity (after Deducting Minority Equity) | 231.24 | 256.16 | -9.728 |
| Profit (Loss) per Share | -0.4 | -0.79 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | 2.21 | 0.62 | |
| Accumulated Losses | 122.76 | 34.68 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | Reasons for the decrease in sales during current quarter compare to the same quarter last year are decrease in sales of drawn wire products by about 25% and decrease in sales of axles and spare parts by about 51% and decrease in sales of metal casting products by about 16%. The decrease in sales are due to low market demand and competition from imported products mainly from China. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | Reasons for the decrease in losses during current quarter compare to the same quarter last year are improvement in the profit margins for drawn wire products due to decrease in the cost of production and decrease in selling & distribution expenses, decrease in administrative expenses, increase in reversal of expected credit losses , increase in other income and decrease in zakat provision, in addition to decrease in the losses from discontinued operations. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | Reasons for the decrease in sales during current quarter compare to the last quarter are decrease in sales of drawn wire products by about 27% ,decrease in sales of axles and spare parts by about 34% and decrease in sales of metal casting products by about 15%. Th decrease in sales due to low market demand and unfair competition from low price of imported products from China. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | Reasons for the increase in the losses during current quarter compare to the last quarter are decrease in sales, increase in provision for Zakat and increase in losses from discontinued operations. |
| The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is | Reasons for the decrease in sales during current period compare to the sales during the same period last year are decrease in sales of axles and spare parts by 28% and decrease in sales of metal casting products by 12 % due to low demand and competition, that was partially offset by improvement in sales of drawn wire products by about 6%. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | Reasons for the decrease in losses during current period compare to the same period last year are improvement in sales of drawn wire products and decrease in their cost of production , in addition to the increase in reversal of expected credit losses, increase in other income , decrease in provision for Zakat and decrease in losses from discontinued operations. |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | None |
| Reclassification of Comparison Items | Certain comparative figures have been reclassified to comply with the current period presentation of the interim condensed consolidated financial statements. |
| Additional Information | The accumulated losses reached SAR 122.76 Million, equivalent to 34.68% of the company’s paid up capital of SAR 354 Million after the approval of EGA on 10 Jun 2024 to transfer SAR 27.17 Million from statutory reserve to write-off part from the accumulated losses of SAR 96.89 Million as stated in the financial statement at 31 Dec 2023.
The the main reasons for the accumulated losses are the following: 1- Decrease in sales of the main products due to low demand in the local and export markets. 2- Competition in the local market from similar products imported from China. 3- Local manufacturers of P.C. Strand product (one of the main products of the company) entered in some exporting countries, negatively impacted the quantities exported to those countries. 4- High fluctuation in the price of high-carbon steel (the raw material for the main products of the company) and it is not produced locally. 5- Decrease in average selling price for some products, negatively impacted the profit margins. The company came to know that the accumulated losses reached 20% or more from its paid up capital on 30/06/2023 and announced immediately , the company will apply the procedures and instructions applicable on companies listed in Saudi capital market whose accumulated losses reached 20% or more out of the capital. During 2024 board of director decided to discontinue production line of HWS due to lack of economic feasibility ( for more details on discontinued operations during quarter 2,2025 , refer to the note 16 in the interim condensed consolidated financial statements). |
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