What was Zahrat Al Waha's net profit in H1 2026?

Net profit reached SAR 30.56 million, compared to a net loss of SAR 7.88 million in H1 2025.

What caused the company's turnaround from loss to profit?

The turnaround was mainly due to revenue growth of 20.31% outpacing a 7.88% increase in cost of sales, leading to a 190.17% gross profit surge, along with lower expenses and higher other income.

How did Q2 2026 results compare to Q1 2026?

Q2 revenue rose 40.46% to SAR 180.96 million, and net profit jumped 151.56% to SAR 21.86 million.

Zahrat Al Waha Posts SAR 30.56M Net Profit in H1 2026

Zahrat Al Waha for Trading Co. (3007) posted a net profit of SAR 30.56 million in the first half of 2026, compared to a net loss of SAR 7.88 million in the same period of 2025, driven by a 20.31% revenue increase to SAR 309.80 million.

Zahrat Al Waha for Trading Co. (3007) announced its interim financial results for the six months ended June 30, 2026, reporting a net profit of SAR 30.56 million, versus a net loss of SAR 7.88 million in the prior-year period. Revenue rose 20.31% year-on-year to SAR 309.80 million, fueled by higher sales volumes in the printing and packaging segments (shrink and stretch film) and increased selling prices in the plastic bottle preform and plastic cap segments.

Key Financial Results

Item	H1 2026	H1 2025	Change
Revenue	SAR 309.80M	SAR 257.50M	+20.31%
Net Profit (Loss)	SAR 30.56M	(SAR 7.88M)	Turnaround
Gross Profit	SAR 50.95M	SAR 17.55M	+190.17%

On a quarterly basis, Q2 2026 revenue surged 40.46% sequentially to SAR 180.96 million from SAR 128.83 million in Q1 2026. Net profit for Q2 2026 jumped 151.56% QoQ to SAR 21.86 million from SAR 8.69 million.

Key Highlights from the Announcement

The company attributed the turnaround to several factors:

Revenue growth of 20.31% outpacing a 7.88% increase in cost of sales, resulting in a 190.17% gross profit surge.
A 13.64% decline in selling and distribution expenses.
Higher other income, including zakat recovery for 2019-2020 of SAR 3.36 million and customs duties recovery of SAR 1.52 million.
An 11.06% decrease in finance costs.
Conversion of prior-year fair value investment losses into profits in the current period.

Guidance

The company did not provide specific forward guidance but noted ongoing geopolitical and security developments in regional markets, without quantifying their impact.

Stock Impact

The significant improvement in financial performance is expected to positively influence Zahrat Al Waha's stock (3007), especially after returning to profitability. However, investors may seek further clarity on growth sustainability amid regional challenges.

What This Means for Investors

This announcement marks a substantial turnaround for the company, driven by sales growth and margin expansion. Investors should monitor whether the company can maintain this momentum in the second half of the year, given the uncertain geopolitical environment.