Arabian Plastic (9548.SR) Q2 2024 Earnings Report

Arabian Plastic Industrial Company Limited reported QQ2 2024 revenue of SAR 43.21 million, down 47.6% year over year, with a gross profit of SAR 7.36 million and a gross margin of 17.0%. The company posted an operating profit of SAR 3.73 million (operating margin 8.62%) and net income of SAR 2.65 million (net margin 6.14%), reflecting meaningful top-line weakness but a still-material contribution from core operations. Despite profitability on an EBIT basis, free cash flow remained negative at SAR −6.35 million due to heavy capital expenditure and working capital dynamics, while cash flow from operations was positive at SAR 9.38 million supported by depreciation跑 and working capital movements. Balance sheet metrics show a leveraged but manageable position for a plastics-focused producer in a cyclical commodity space: total debt SAR 74.27 million with net debt SAR 68.48 million, and a debt-to-equity ratio of 0.73. The company ended QQ2 2024 with SAR 5.79 million in cash and cash equivalents and a current ratio just above 1.0 (1.05) and a quick ratio of 0.65, signaling modest liquidity headroom. The capitalization regime and deleveraging potential will be important near-term drivers, particularly given a capital-intensive footprint (capital expenditures of SAR 11.04 million during the period). Note: The earnings transcript data set provided contains no transcript entries. As a result, management commentary quotes are not available for extraction, and the transcript-based insights below are therefore constrained to the numerical results and publicly observable context. Where management commentary is available externally, it should be incorporated in a follow-up update.