Riyadh, Saudi Arabia — Raoom Trading reported a SAR 2.72 million net loss in Q2 2025, reversing a SAR 4.36 million profit from the same period last year. The company cited lower revenue and losses from financial asset revaluations in its Tadawul filing.

Raoom Trading Q2 Loss Driven by Falling Sales and Asset Write-downs

Revenue dropped 9.7% year-on-year to SAR 24.18 million, as both selling prices and sales volumes declined under weaker market conditions. Gross profit fell 24.1% to SAR 5.91 million, while operating profit declined 37.5% to SAR 3.09 million.

A revaluation loss of SAR 4.4 million on financial assets further worsened the quarter’s results. In contrast, the company reported a SAR 0.5 million gain in Q2 2024.

Quarterly Trends Reflect Broader Downturn

Compared to Q1 2025, revenue dropped 11.7%. Raoom also shifted from a SAR 5 million net profit to a net loss. Management blamed the decline on pricing pressure and falling volumes across core trading categories.

H1 Profit Plunges 92%

In the first half of 2025, net profit dropped to SAR 2.29 million, down 91.9% from SAR 28.31 million in the same period last year. Revenue decreased 13.8% to SAR 51.55 million, and operating profit fell 46.2% to SAR 8.31 million.

A SAR 3 million loss from asset revaluation weighed heavily on H1 performance, compared to a SAR 14.8 million gain in H1 2024. As a result, total comprehensive income declined by over 91%.

Earnings per share fell to SAR 0.18, down from SAR 2.27 a year earlier. Shareholders’ equity stood at SAR 153.94 million, slightly lower than the previous year. Despite the decline, the external auditor issued an unmodified opinion on the financials.

What This Means for Investors

  • Revenue pressure: Falling prices and volumes led to lower sales.
  • Asset markdowns: Revaluation losses had a direct impact on the bottom line.
  • Profit reversal: The steep drop in quarterly and half-year profits highlights operational and financial challenges.
  • Audit confidence: A clean auditor opinion indicates reliable financial reporting amid the downturn.

 

THE SAUDI STANDARD’S VIEW: Revaluation Losses Highlight Need for Trading Sector Diversification

The Raoom Trading Q2 loss of SAR 2.72 million reveals the mounting challenges mid-sized trading firms face in today’s market. A combination of weaker demand, price erosion, and investment losses has exposed the sector’s need for strategic transformation.

  • A 9.7% decline in revenue and a 24.1% drop in gross profit show shrinking margins in traditional trading. Firms must now prioritize digital tools and integrated value chains to stay competitive.
  • The SAR 4.4 million revaluation loss signals a risk associated with market-linked assets. Companies should consider stronger portfolio risk controls and hedging strategies.
  • With H1 profit down nearly 92% and EPS falling from SAR 2.27 to SAR 0.18, Raoom’s results highlight deep structural issues. Long-term success will require a shift beyond short-cycle trading models.
  • However, an unmodified audit opinion reinforces confidence in the company’s transparency and financial disclosures.

In conclusion, Raoom’s recent performance shows why trading firms must evolve. To succeed in Saudi Arabia’s maturing economy, businesses need innovation, diversification, and stronger risk management principles that align closely with Vision 2030’s goals.

 

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