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Middle East Paper Co. announces the interim financial results for the period ending on 30-09-2017 (Nine Months)

MEPCO 1202.B 0.00% 0.00 0.00
Element Current quarter Similar quarter for previous year % Change current Previous quarter % Change previous
Net profit (loss) 22,218 2,282 873.62 18,176 22.24
Gross profit (loss) 55,302 28,758 92.3 45,419 21.76
Operational profit (loss) 27,701 9,301 197.83 26,056 6.31
All figures are in (Thousands) Saudi Arabia, Riyals
Element Current period Similar period for previous year % Change
Net profit (loss) 43,646 107,371 -59.35
Gross profit (loss) 132,390 105,927 24.98
Operational profit (loss) 64,490 38,634 66.93
Earning or loss per share, Riyals 0.87 2.15 -
All figures are in (Thousands) Saudi Arabia, Riyals
Element EXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last year The main reasons for the increase in net profit, gross profit and operating profit are increase in sales value, volume and average selling price and decrease in finance cost because of reduction in average borrowings level and average borrowings rates, however the impact of above is partially offset by the increase in cost of sales per ton, general and admin expenses, selling and distribution expenses, zakat expenses and decrease in fair value of derivative financial instruments.
Further, the net loss for same quarter of previous year (previously year reported numbers) is changed to net profit due to the IFRS adjustments.
Reasons of increase (decrease) for period compared with same period last year The main reasons for decrease in the net profit is mainly due to net gain on claim for expropriated land and premises amounted to SR 91.96 million recorded in same period last year, however the impact of above is partially offset by the decrease in finance cost because of reduction in average borrowings level and average borrowings rates and zakat expense in the current period.
The increase in gross profit and operating profit are mainly due to the increase in sales value, volume and average selling prices as well as decrease in general and admin expenses, selling and distribution expenses and increase in other income, however the impact of above is partially offset by increase in cost of sales per ton.
Reasons of increase (decrease) for quarter compared with previous quarter The main reasons for increase in the net profit, gross profit and operating profit are increase in sales value, volume and average selling price, decrease in finance cost because of reduction in average borrowings level and capitalized portion of borrowings cost . However, the impact of above is partially offset by the increase in cost of sales per ton, general and admin expenses, selling and distribution expenses and decrease in fair value of derivative financial instruments.
Reclassifications in quarterly financial results Certain comparative figures have been reclassified to conform to the presentation for the current period as a result of the transition to IFRS.
Other notes 1- Sales revenues for the quarter amounted to SR 212.74 Million compared to SAR 148.13 Million for the same quarter last year, an increase of 44%, compared to 186.72 for the previous quarter, an increase of 14%.
2- Sales revenues for the current period amounted to SR 565.96 Million compared to SAR 489.49 Million for the corresponding period, an increase of 16%.
3- Total comprehensive income for the quarter amounted to SR 22.22 Million as compared to SR 1.93 Million for the same quarter last year, an increase of 1050%, compared to a total comprehensive income of SAR 18.17 Million for the previous quarter, an increase of 22%.
4- Total comprehensive income for the current period is SR 43.65 Million compared to SR 106.32 Million for the same period last year, a decrease of 59%, the decrease in total comprehensive income for the current period compared to the same period of the previous year is due to the recording of a non-recurring profit of SAR 91.96 Million resulting from expropriation land and premises.
5- The total shareholders' equity during the current period amounted to SR 699.61 Million compared to SR 706.28 Million for the same period last year, a decrease of 0.9% (there are no minority rights).
6- The Company has adopted the International Financial Reporting Standards (IFRS) effective January 1, 2017. Accordingly, some changes in the Company's financial statements has been made in a number of items in the measurement, recognition, presentation and disclosure method for the current and comparative periods in accordance with the International Financial Reporting Standards as adopted in the Kingdom of Saudi Arabia.

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