Zamil accumulated losses reach 28.2% of capital

Logo of Zamil Industrial Investment Co.

Zamil Industrial Investment Co.’s accumulated losses reached 28.2% of its capital, according to a statement to Tadawul.

In compliance with the International Financial Reporting Standards (IFRS), Zamil set aside exceptional provisions of SAR 162.8 million for damaged inventory and SAR 8.2 million for impairment loss on property, plants, and equipment after the fire, on March 3, 2023, at a factory owned by its subsidiary, Al-Zamil Air Conditioners and Home Appliances Co. These provisions are expected to be written back in Q3 or Q4 2023.

Procedures related to Tadawul-listed companies, whose accumulated losses reach 20% or more of capital, will apply.

Zamil has full insurance coverage to mitigate the risk of losses arising due to fire. The company has already filed claims and is confident that the settlement will cover the losses and subsequently, the accumulated losses will be reduced, the statement added.