The losses of “Gazadco” 377.5% to 153.27 million riyals in 2024

The losses of Jazan Development and Investment Company “Gazadco” in 2024 increased by 377.5% to 153.27 million riyals, compared to losses of 32 million riyals in 2023.
According to the company’s statement on the circulation of Saudi Arabia, the reason for the decrease in the net profit during the current fiscal year compared to the previous fiscal year is mainly to several negative factors that greatly affected the company’s profitability:
The cost of revenue increased from 57.3 million riyals in 2023 to 80.7 million riyals in 2024, and the main reason is the disturbance that occurred in the operation, especially in the operation of shrimp during the first half of the year. In addition, the company recorded losses in the fair value of the biological assets at a value of 30.3 million riyals in 2024, compared to the gains in the fair value of 11.9 million riyals in the previous fiscal year, which reflects the decrease in the productivity and estimation of the biomass of the shrimp.
Moreover, the company recorded a loss of 4.2 million riyals to property, machines and equipment.
A customized 66.9 million riyals has also been registered with regard to the guarantee commitment to Al -Rif Sugar Company, compared to 33.9 million riyals, which was replaced in the previous fiscal year.
The share of the results of associate companies decreased to 1.2 million riyals in 2024, compared to 5.4 million riyals in 2023. In addition, the company incurred a net loss from the suspended operations (closing the water factory as announced previously) at a value of 13.7 million riyals, compared to 1.4 million riyals in the previous fiscal year.
Zakat expense increased significantly from 3,272,354 riyals in 2023 to 8,873,229 riyals in 2024. This rise is mainly due to the settlement of late issues from 2014 to 2020, in addition to an additional evaluation related to 2021 and 2022 years.
As a result of these factors, the company recorded a net loss of 153.3 million riyals for the year ending December 31, 2024, compared to a net loss of 32.3 million riyals in the previous fiscal year.
Jazadco announced its accumulated losses of 26.72% of the capital, based on the annual financial results ending December 31.
The company said that the main reasons that led to these losses:
Gazadco had provided a guarantee of the Saudi Industrial Development Fund for its share of 15% of a loan of 672 million riyals for the Rif for Sugar Refining Company, as the value of the guarantee of Jazadco is 100,800,000 riyals.
On the date of 11-20-2024, the Saudi Industrial Development Fund demanded the full value of the loan from the guarantors of the Rif Refining Company, as a result of the project’s failure to pay.
Accordingly, Gazadko confessed to the value of the guarantee as an existing commitment in its financial statements, which negatively affected the income list.