All figures are in (Thousands) Saudi Arabia, Riyals
Element
EXPLAINATION
Reasons of annual financial results
Reasons of (decrease) in net income for the current period compared with the same period of previous year are due to decrease in sales caused by lower local market demand caused by reduction of projects and continuation of dumping in local market resulting in the reduction in selling prices in order for the company to maintain its market share which led to decrease in gross profit. This is in addition to increase in financing expenses, Zakat expenses, and, decrease in other revenues since there were nonrecurring savings in the same period of previous year. The company had created a provision against impairment in its investment in its associate company Ceramic Pipes Company amounting to 25 million SAR. Meanwhile a decrease in each of selling and marketing expenses and general & administrative expenses was achieved.
Other notes
The company has faced challenges due to the economic situation in the kingdom and the reduction of government and private construction contracts, in addition to the dumping situation in the kingdom. European currency situation has also impacted local market and impacted the company competitive ability abroad. The sales revenues of the current period reached 1,304 million SAR compared with the sales revenues for the same period of previous year which reached 1,658 million SAR with drop of 354 million SAR representing 21%. Total shareholders equity as at 31/12/2016 amounted to 1,823 million SAR compared with 1,898 million SAR as at 31/12/2015 with drop of 4%. (there is no Minority interest).
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