What was Amwaj International's net loss in 2025?

The net loss was SAR 87.80 million.

What caused Amwaj International's large loss?

The loss was mainly due to inventory discrepancies of SAR 28.67 million and an expected credit loss provision of SAR 47.12 million.

Are these losses entirely cash-based?

No, part of them are accounting provisions that may not result in immediate cash outflows.

What actions has Amwaj International taken to address the situation?

The company has strengthened internal controls over inventory and receivables and is pursuing legal action to recover amounts.

Amwaj International Reports SAR 87.8M Net Loss in 2025

Amwaj International (9537) reported a net loss of SAR 87.8 million for the twelve months ended December 31, 2025, driven by inventory count discrepancies and a sharp increase in expected credit loss provisions.

Amwaj International Co. (Ticker: 9537) announced its annual financial results for the twelve months ended December 31, 2025, posting a net loss of SAR 87.80 million, compared to a profit in the prior year. The sharp decline was attributed to several exceptional items, including inventory discrepancies and credit provisions.

Key Financial Results

Item	2025	2024	Change
Revenue	SAR 276.61 million	—	Decrease
Net Loss	(SAR 87.80 million)	—	—
Inventory Discrepancy Loss	SAR 28.67 million	—	—
Expected Credit Loss Provision	SAR 47.12 million	SAR 2.41 million	Significant increase

Note: The company did not disclose full prior-year figures in the announcement.

Key Highlights from the Statement

The company attributed the loss to:

Declining revenue, leading to lower gross profit.
Inventory count discrepancies of SAR 28.67 million, identified at one branch.
Expected credit loss provision of SAR 47.12 million, up from SAR 2.41 million in 2024, mostly related to receivables from the same branch.
Higher general and administrative expenses and continued finance costs.

The company noted that part of these impacts are accounting provisions under IFRS and do not necessarily represent final cash losses. It also did not recognize any recoverable amounts from litigation related to the inventory incident, as legal proceedings are ongoing.

Guidance

No specific guidance was provided, but the company confirmed it is pursuing legal and regulatory measures to recover receivables and claims. It has also strengthened internal controls over inventory and trade receivables.

Impact on Stock

The announcement did not include any immediate impact on the stock price. However, the significant loss may pressure the stock in the near term.

What This Means for Investors

The results highlight significant operational challenges, particularly in internal controls and inventory management. Investors should monitor the progress of legal proceedings and recovery efforts, as any future recoveries could positively impact results.