Riyadh – Mubasher: Mufeed Company incurred net losses of SAR 27.31 million in the first six months (6M) of 2026, compared to net profits of SAR 16.32 million a year earlier.
The company attributed the downturn to a sharp decline in revenues, which fell by SAR 51.51 million to reach SAR 26.57 million, compared to SAR 78.08 million a year earlier.
The revenue contraction was primarily driven by the event management division, which saw a decrease of SAR 39.14 million, and the production and manufacturing contracting activity, which declined by SAR 9.81 million.
Management cited the cyclical nature of the exhibition business and a reduction in project awards as key factors.
Profitability was further impacted by SAR 14.20 million in direct costs related to unapproved works within a disputed project in Aseer, which were recognized as other expenses.
Additionally, finance costs rose by SAR 565,809 and Zakat expenses increased by SAR 527,776.
Loss per share for the period hit SAR 4.14, compared to earnings per share (EPS) of SAR 2.47 in H1-25.
Total shareholders' equity decreased by 17.60% to SAR 127.89 million. The independent auditor’s report included an emphasis of matter regarding the ongoing litigation against a government entity.
