The Investors 2025: Margin Pressure Weighs on Profit Despite Higher Sales

• The company's sales revenue increased by 10% year over year.

• The investors' shares experienced a decline of 4% during 2025.

• Net profit declined sharply in 2025 due to a significant contraction in gross profit margin, despite higher sales and improved performance from associates.

Throughout the year 2025, The Investors’ stock price experienced a decline. The year began with stock trading at 1.54 riyals per share, and by the end of the year, it closed at 1.48 riyals per share, representing a 4% decrease.

Here are the key numbers:

● Sales Revenue: 552 million QAR vs. 501 million QAR in 2024 (a 10% YoY increase).

● Gross Profit: 213 million QAR vs. 248 million QAR in 2024 (a 14% YoY decline).

● Net Profit: 144 million QAR vs. 165 million QAR in 2024 (a 12% YoY decline).

● Earnings per Share: 0.120 QAR/share vs 0.133 QAR/share in 2024 (an 10% YoY decline).

● Dividend per Share: 0.100 QAR/share vs 0.130 QAR/share in 2024 (a 23% YoY decline).

After two challenging years of declining core sales, the company showed signs of recovery in 2025, with revenue increasing by 10% year over year and contributing approximately QAR 25 million to net profit. However, this positive momentum was outweighed by significant margin compression, as the gross profit margin fell from 50% in 2024 to 39% in 2025, reducing net profit by roughly QAR 60 million.

Given the trend in gross profit margin, it is imperative for management to conduct a comprehensive analysis across all product lines. This examination will help determine the extent to which external factors have contributed to the downturn, as well as identify internal business factors such as changes in pricing strategy, as well as production efficiency. With these insights, management can strategically address the elements within its control.

To support business growth, the company strategically invested in several associate companies. Their performance in 2025 improved compared to 2024, leading to a positive impact on net profit. This improvement in associate earnings contributed to a net profit growth of 21 million QAR.

For more comprehensive information, please refer to the reliable financial information source, http://sahmik.com.