Riyadh – Mubasher: Ash-Sharqiyah Development Company turned to net losses of SAR 2.12 million for the second quarter (Q2) of 2026, against net profits valued at SAR 317,953 recorded in Q2-25.

The company attributed the downturn to a 28.56% decline in quarterly revenue, which fell to SAR 42.84 million from SAR 59.97 million.

The management cited lower sales at its subsidiary, Sadu Al Arab, driven by price fluctuations and seasonal business activity.

Gross profit for the quarter decreased by 31.39% to SAR 4.10 million, while operating losses expanded by 132.47% to reach SAR 3.35 million.

For the first half (H1) of 2026, the company narrowed its net loss to SAR 1.85 million, versus SAR 5.33 million in the prior-year period. This improvement occurred despite a 6.51% drop in half-year revenue to SAR 98.01 million, as the cost of sales decreased more significantly than the decline in revenue.

The independent auditor’s report included a qualified opinion regarding intangible assets related to government grants valued at SAR 171.31 million.

The auditor noted insufficient data to determine if an impairment loss should be recognized for these assets. Loss per share for the six-month period reached SAR 0.06.