| Reasons of increase (decrease) for quarter compared with same quarter last year |
Reasons of (decrease) in net income of the current quarter compared with the same quarter of previous year was due to decrease in gross profit caused by decrease in selling price of some products due to lower market demand, in addition to continuous dumping of the local market with the Indian, Chinese, and Spanish products of ceramic tiles and sanitary ware although the company succeeded in increasing its local market share. This is in addition to increase in financing costs charged to statement of profit or loss, and decrease in other operating revenues, on the other hand there was decrease in selling and marketing expenses, general and administrative expenses, Zakat expenses, the net share in loss from associates. |
| Reasons of increase (decrease) for period compared with same period last year |
Reasons of (decrease) in net income for the current period compared with the same period of previous year was due to decrease in sales caused by lower markets demand compared with last year and the company focusing to increase its market share through more expanding and reducing selling price of some products which led to drop in gross margin. This is in addition to increase in financing costs charged to statement of profit or loss, and decrease in other operating revenues, on the other hand there was decrease in selling and marketing expenses, general and administrative expenses, Zakat expenses, the net share in loss from associates. |
| Reasons of increase (decrease) for quarter compared with previous quarter |
Reasons of (decrease) in net income for the current quarter compared with the previous quarter are due to decrease in sales revenues caused by the start of the holy month of Ramadan and the holidays during the current quarter. This is in addition to increase in financing costs charged to statement of profit or loss, decrease in gains from sale of real estate property, on the other hand there was decrease in manufacturing costs, Zakat expense, general and administrative expenses and increase in other operating revenues. |
| Reclassifications in quarterly financial results |
Figures of the comparative periods were reclassified to be consistent with the accounting policies implemented in the current quarter which are prepared in accordance with International Financial Reporting Standards. |
| Other notes |
The company local markets are still decreasing because of continuous dumping of Chinese and Indian ceramic tiles products. In addition to delay of many government and private construction projects, and to the increase of some imported materials. The decrease of exchange rates of some currencies caused drop in the company products competitiveness in the international markets like Europe which is considered a main market for the company.The sales revenue for the current quarter was SR 275 million compared with SR 348 million for same quarter of previous year showing a drop by SR 73 million representing 21%. The sales revenue for the current period was SR 590 million compared with SR 721 million for same period of previous year showing a drop by SR 131 million representing 18%.-Total comprehensive loss for the current quarter was SR (6) million compared with income of SR 28 million for same quarter of previous year showing a drop of SR 34 million representing 120%, and compared with income of SR 12 million in the previous quarter showing a drop of SR 18 million representing 150%. Total comprehensive income for current period was SR 6 million compared with income of SR 76 million for same period of previous year showing a drop of SR 70 million representing 92%.-Total shareholders equity as at 30/06/2017 was SR 1,777 million compared with SR 1,875 million as at 30/06/2016 showing drop of 5%. (there is no Minority interest). -The Company has adopted the International Financial Reporting Standards (IFRS) effective 1 January 2017. Accordingly, some changes in the Company's financial statements have been made in a number of items in the measurement, recognition, presentation and disclosure method for the current and comparative periods in line with the accounting policies adopted according to the requirements of International Financial Reporting Standards (IFRS) adopted in Saudi Arabia and other standards and publications approved by the Saudi Organization for Certified Public Accountants (SOCPA). These changes have been made in Note 2 and Note 7 (Application of International Financial Reporting Standards for the first time) in the notes to the condensed consolidated interim financial statements for the quarter ended 30/06/2017. |
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