National Metal Manufacturing and Casting Co. (Maadaniyah) reported a wider net loss of SAR 28.12 mln (USD 7.48 mln) in the first nine months of 2024, up from a loss of SAR 18.42 mln in the same period last year.
The company attributed this increase in losses primarily to a 50pct YoY drop in sales of metal casting products due to lower demand and rising competition. Additionally, the average selling price of drawn wire products declined, while selling and distribution expenses, administrative expenses, provisions for credit losses, and a decrease in both other income and profit from bank deposits also weighed on performance.
Despite these challenges, Maadaniyah’s revenue rose by 6.8pct YoY to SAR 188.89 mln (USD 50.2 mln), driven by a 32pct increase in the sales value of drawn wire products, with quantities sold up 51pct YoY.
In Q3 2024, Maadaniyah’s net loss expanded by 50pct to SAR 8.94 mln (USD 2.37 mln) from SAR 5.96 mln a year ago, though sales revenue increased by 28.7pct YoY to SAR 68.35 mln (USD 18.1 mln).
The company’s accumulated losses reached SAR 97.84 mln (USD 26 mln), equating to 27.64pct of its paid-up capital as of Jan-Sep 2024. Maadaniyah explained these losses were due to several factors, including reduced sales of core products in local and export markets, competition from Chinese imports, local competition in P.C. strand products in export markets, high volatility in high-carbon wire rod prices (a key raw material), lengthy import lead times, and declining average selling prices across some markets, all of which pressured profit margins.
Maadaniyah operates four business units, including a wire drawing plant, a metal casting plant, an axle manufacturing plant, and a machining and fabrication facility located in Jubail and Dammam.
1 USD / 3.75 SAR
