Zahrat Al Waha for Trading Co. announces its Interim Financial results for the Period Ending on 2026-09-30 ( Nine Months )

- An increase in sales volume.

- An increase in selling prices.

- An increase in gross profit, driven by a 52.42% rise in sales, while the cost of sales increased by 45.94%, due to higher sales volumes and selling prices.

- An increase in sales volume.

- A decline in gross profit, impacted by a 5.84% increase in the cost of sales, while sales revenue rose by 2.63%.

- An increase in selling and distribution expenses.

- An increase in general and administrative expenses.

- An increase in the provision for impairment of trade receivables.

- Higher net losses from changes in investments at fair value through profit or loss (investment portfolio).

- An increase in finance costs.

- An increase in sales volume.

- An increase in selling prices.

- An increase in gross profit, driven by a 30.62% rise in sales value, while the cost of sales increased by 19.48%.

- A decrease in selling and distribution expenses.

- An increase in other income.

- A decrease in losses from changes in investments at fair value through profit or loss (investment portfolio).

- A decrease in finance costs.

Finance costs paid were reclassified from financing activities to operating activities.

The table below illustrates the impact on the cash flow statement for the period ended 30 September 2025:

Net cash flow generated from operating activities: Before Reclassification 52,308,207 – Reclassification (8,618,497) - After Reclassification 43,689,710

Net cash flow used in financing activities: Before Reclassification (39,237,000) – Reclassification 8,618,497 - After Reclassification (30,618,503).

2- Financing costs for the current nine-month period of 2026 were lower than those of the same period in 2025. Furthermore, losses from changes in investments at fair value through profit or loss (investment portfolio) decreased during the current period compared to the net losses recorded in the same period of the previous year. Combined with the increase in operating profit, these factors led to a net profit of SAR 47.41 million for the current period of 2026, compared to a loss of SAR 1.87 million in the same period of the previous year.

3- Shareholders' equity increased to SAR 338.07 million as of September 30, 2026, compared to SAR 291.03 million as of December 31, 2025, due to the net profit generated during the nine months ended September 30, 2026.

4- International Financial Reporting Standard 18 (IFRS 18), "Presentation and Disclosure in Financial Statements," will replace International Accounting Standard 1 (IAS 1), "Presentation of Financial Statements." This new standard will apply to annual reporting periods commencing on or after January 1, 2027. The company did not apply the new standard early in preparing these condensed interim financial statements. The company is currently assessing the expected impact of the initial application of IFRS 18, "Presentation and Disclosure in Financial Statements," and discloses this assessment in the notes to the condensed interim financial statements dated September 30, 2026.

5- The Middle East has experienced rapidly evolving geopolitical and security developments, resulting in increased instability in certain regional markets. These developments do not require any adjustments to the balances or disclosures recognized in the financial statements for the nine months ended 30 September 2026.

Based on the information available on the date of approval of these financial statements, management has not identified any material indicators that would adversely affect the Company's ability to continue as a going concern. Management will continue to monitor relevant developments and take appropriate actions, as necessary.

6- Basic earnings per share were calculated by dividing the profit/loss for the period attributable to the company's common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings/loss per share is the same as basic earnings/loss per share, as the company does not have any dilutive instruments.

7- We would like to draw the attention of our valued shareholders to the condensed interim Financial Statements for the nine months ended September 30, 2026, which will be available on the investor relations app for Zahrat Al Waha for Trading Co. on smartphones and tablets, and through the company's website at the following link: https://zaoasis.com/investors/financial-information, after sending them to the competent authorities.