QQ2 2025 marks a notable acceleration in revenue for Arabian Food Dairy Factories Company (9536.SR), with revenue rising to SAR 15.83 million, up 115.3% year over year and 100% quarter over quarter. The strong top line drives a solid gross profit of SAR 7.04 million and a robust gross margin of 44.46%, supported by EBITDA of SAR 1.16 million and an operating income of SAR 0.315 million. Despite material operating and financing activity, the company reports a net loss of SAR 10,757 for the quarter, reflecting non-operating items such as interest expense (~SAR 0.62 million) and a tax expense (~SAR 0.15 million) alongside a minor negative balance from other income/expenses. The result indicates meaningful operating leverage but limited profitability at the net income line, underscoring the need for margin discipline and improved free cash flow conversion.
Liquidity remains comfortable with a current ratio of 2.68 and a quick ratio of 1.87, while cash per share stands at SAR 8.19. However, free cash flow per share remains negative at SAR -0.71, and the company’s equity is modestly leveraged (debt ratio 0.181; debt to equity 0.339). Valuation metrics imply a cautious stance: P/S around 3.07 and an elevated EV/EBITDA (~43.41), reflecting investor focus on growth cadence versus current profitability. The absence of a disclosed earnings call transcript limits the incorporation of qualitative management color, though the quantitative results point to a growth story with ongoing profitability normalization as scale improves and financing costs remain a constraint.