Riyadh - Mubasher: Consolidated Grünenfelder Saady Holding Company (CGS) has announced its annual financial results for the fiscal year ending 31 March 2026, reporting a net profit of SAR 46.60 million.
This figure represents a 29.62% decrease compared to the SAR 66.21 million recorded in the previous fiscal year. The decline in profitability was attributed to a contraction in revenues from the refrigerated transport sector, rising administrative costs associated with the company’s recent listing on the Saudi Exchange (Tadawul), and geopolitical factors impacting regional supply chains.
The company’s total revenue for the 2026 fiscal year reached SAR 477.1 million, a 5.4% decline from the SAR 504.3 million achieved in 2025.
This downturn was primarily driven by a 19.7% drop in the refrigerated transport segment, which saw market share return to normalized levels following an exceptionally strong performance in 2025.
Furthermore, geopolitical developments in the region during the latter part of the fourth quarter disrupted supply chains, leading to delays in the execution of several projects.
Despite the overall decline in revenue, CGS reported strong growth in its cooling and customized solutions segments, which grew by 22% and 28.8%, respectively.
Management noted that these gains reflect successful revenue diversification efforts and a stabilizing demand for specialized cooling infrastructure. The company’s backlog also reached a record high of approximately SAR 300 million, up from SAR 190 million the previous year, providing significant visibility for future revenue streams in 2027.
Profitability margins were pressured throughout the year. The net profit margin fell to 9.8%, compared to 13.1% in the prior year, while gross profit decreased by 9.9% to SAR 104.2 million.
The company attributed the margin compression to a shift in the revenue mix, with a higher contribution from the cooling sector. While this segment currently operates at lower short-term margins, CGS views it as a long-term growth driver that will benefit from future service-based revenue.
Operating expenses saw an upward trend, with general and administrative expenses rising by 7.4% to SAR 34.8 million. This increase was largely due to organizational investments required to support the company’s transition to a public listed entity, including the expansion of the Board of Directors, key executive appointments, and listing fees.
Additionally, higher provisions for expected credit losses contributed to the rise in costs. Earnings before interest, taxes, depreciation, and amortization (EBITDA) fell to SAR 61.7 million, representing a 12.9% margin compared to 15.3% in 2025.
On the balance sheet, CGS maintained a stable financial position. Total equity attributable to shareholders rose by 23% to SAR 200.1 million. The company’s liquidity ratios also showed improvement, with the current ratio rising to 2.49 and the quick ratio increasing to 1.48.
In light of these results, the Board of Directors has recommended a cash dividend of SAR 0.23 per share for the 2026 fiscal year, subject to shareholder approval.
When combined with the interim dividend of SAR 0.10 per share already distributed, the total payout represents 71.5% of the year’s net profit.
The 2026 fiscal year marked a transformative period for CGS, highlighted by its successful listing on Tadawul. While external challenges and one-time listing costs impacted the bottom line, the company’s record backlog and expansion into the defense and oil and gas sectors suggest a strategic focus on diversifying its industrial footprint within the Kingdom.
