Raoom Trading Posts 10.84M SAR Nine-Month Loss

Riyadh, Saudi Arabia — Raoom Trading Co. swung to a net loss of 10.84 million SAR for the nine months ending September 30, 2026, compared to a net profit of 6.96 million SAR in the same period a year earlier. The 17.80 million SAR swing stems almost entirely from a sharp rise in fair value losses on financial assets, which reached 20.23 million SAR versus just 2.24 million SAR in the prior-year period.

Revenue also slipped 3.5% year-on-year to 75.4 million SAR, down from 78.1 million SAR. However, operating profit held up better, rising 3.7% to 12.77 million SAR. The gap between solid operating performance and a headline net loss reflects the growing drag from financial asset revaluations — a distinction investors must understand clearly.

Quarterly Breakdown

The third quarter told a similarly divided story. Revenue grew 1.6% year-on-year to 27.0 million SAR and 6.9% quarter-on-quarter, the latter driven by higher sales volumes following the acquisition of the Jeddah branch. Operating profit jumped 24.8% year-on-year and 31.2% quarter-on-quarter to 5.0 million SAR — a genuinely strong operational result.

Yet Raoom Trading reported a net loss of 4.52 million SAR for the quarter, against a net profit of 4.67 million SAR in the same quarter last year. The culprit: fair value losses on financial assets hit 8.74 million SAR this quarter, compared to gains of 0.79 million SAR a year earlier. Quarter-on-quarter, those losses more than doubled from 3.18 million SAR to 8.74 million SAR. Loss per share for the nine-month period stands at 0.87 SAR, against earnings of 0.56 SAR in the prior-year period.

Key Drivers

• Fair value losses on financial assets reached 20.23 million SAR for nine months, up from 2.24 million SAR — the dominant factor behind the net loss.
• Finance costs rose to 2.93 million SAR from 1.49 million SAR, reflecting bank facilities drawn during the period.
• Gross profit fell 2.5% to 21.40 million SAR, tracking the 3.5% revenue decline from lower goods volumes.
• Operating profit grew 3.7% to 12.77 million SAR, showing the core trading business remains functional.
• Shareholders’ equity declined 17.9% year-on-year to 126.44 million SAR from 154.06 million SAR.
• Jeddah branch acquisition contributed to Q3 revenue growth quarter-on-quarter.

Post-Period Event

On October 6, 2026, Raoom Trading completed the acquisition of an operational glass manufacturing facility in Hail Industrial City, including all related contracts and assets. The company confirmed the financial impact will appear in fourth-quarter 2026 results. This adds an industrial manufacturing dimension to what has been a trading-focused business — a structural shift worth monitoring closely.

The external auditor issued an unmodified conclusion on the interim results. Certain prior-period figures were reclassified to match current presentation, with no impact on previously reported equity or net profit.

What This Means for Investors

• The operating business is performing — operating profit grew both year-on-year and quarter-on-quarter. The net loss is driven by financial asset mark-to-market swings, not core trading deterioration.
• Fair value losses on financial assets are non-cash but real. At 20.23 million SAR for nine months, they now consistently overshadow operating gains and demand scrutiny of the investment portfolio.
• Shareholders’ equity has eroded nearly 18% year-on-year to 126.44 million SAR. Continued losses compound this pressure and reduce the equity cushion.
• The Hail glass facility acquisition is a significant strategic step. Its financial contribution — costs, revenue, integration risks — will only become visible when Q4 2026 results are released.

Latest Saudi Arabia investor news and earnings updates

Saudi capital markets coverage and listed company analysis

THE SAUDI STANDARD’S VIEW: RAOOM’S OPERATING STRENGTH MASKED BY PORTFOLIO DRAG

Raoom Trading’s nine-month results present a tale of two businesses operating within one balance sheet. The core trading operation is generating measurable momentum, yet an investment portfolio generating escalating mark-to-market losses is systematically neutralizing those gains. Investors who conflate the headline loss with operational failure will misread this company — but those who ignore the portfolio risk entirely do so at their own peril.

• SEPARATING OPERATIONAL REALITY FROM FINANCIAL NOISE

Operating profit advancing 3.7% over nine months while delivering a 24.8% year-on-year surge in the third quarter alone signals that Raoom’s trading business retains genuine commercial discipline. The Jeddah branch integration has begun contributing to sequential revenue growth, demonstrating that management’s expansion decisions are translating into measurable top-line impact. Investors should track operating profit as the primary indicator of business health, not the distorted net figure.

• THE INVESTMENT PORTFOLIO IS A STRUCTURAL LIABILITY

Fair value losses of 20.23 million SAR over nine months — nearly nine times the prior-year level — represent a concentration risk that now defines the company’s financial narrative. These revaluations are non-cash in nature but carry real consequences for retained earnings, equity, and investor confidence over time. Until Raoom either rebalances or exits these positions, the investment portfolio will remain a persistent override on otherwise creditable operating performance.

• EQUITY EROSION WARRANTS DISCIPLINED MONITORING

A near 18% decline in shareholders’ equity within a single year compresses the company’s financial buffer and reduces its capacity to absorb future shocks without raising capital. Rising finance costs — nearly doubling year-on-year — reflect a simultaneous increase in debt dependency, creating a dual squeeze on the balance sheet from both equity contraction and borrowing expansion. Investors holding positions in Raoom must weigh whether Q4 earnings, bolstered by the Hail facility, can begin reversing this deterioration.

• THE HAIL ACQUISITION REDEFINES RAOOM’S INVESTMENT THESIS

The addition of an operational glass manufacturing facility in Hail Industrial City represents a deliberate pivot from pure trading into industrial production — a materially different business model with distinct cost structures, capital requirements, and revenue dynamics. This move introduces both opportunity and integration complexity, with neither fully quantifiable until fourth-quarter results are published. Investors should treat this acquisition as a reset point for how they model Raoom’s earnings capacity and risk profile going forward.

Raoom Trading’s industrial expansion into Hail Industrial City aligns directly with Saudi Arabia’s push to deepen domestic manufacturing capabilities and reduce reliance on imported finished goods — objectives that sit at the core of Vision 2030’s industrial diversification agenda. If the glass facility is integrated efficiently and the investment portfolio losses stabilize, the company could emerge as a modest but meaningful participant in the Kingdom’s evolving non-oil economy. The coming quarter will be the first real test of whether Raoom’s strategic ambition is matched by operational and financial execution.