Abdullah Al Othaim Markets Co. announces the interim financial results for the period ending on 30-09-2017 (Nine Months)
| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) | 150.62 | 36.19 | 316.19 | 71.21 | 111.52 |
| Gross profit (loss) | 319.12 | 271.63 | 17.48 | 356.88 | -10.58 |
| Operational profit (loss) | 45 | 31.19 | 44.28 | 63.03 | -28.61 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element | Current period | Similar period for previous year | % Change |
|---|---|---|---|
| Net profit (loss) | 281.98 | 132.58 | 112.69 |
| Gross profit (loss) | 996.13 | 849.41 | 17.27 |
| Operational profit (loss) | 172.31 | 126.09 | 36.66 |
| Earning or loss per share, Riyals | 6.27 | 2.95 | - |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element | EXPLAINATION |
|---|---|
| Reasons of increase (decrease) for quarter compared with same quarter last year | The consolidated net income increased by 316.15% compared to the same quarter last year mainly due to the non-recurring gains resulted from the sale of a shopping mall in Hail city during the third quarter to an associate pursuant to the General Assembly resolution on 19/4/2017.The financial impact of the capital gain and the operating income of the mall during the current quarter up to the sale transaction amounted to SR 100.08 million. This financial impact was presented in the Statement of Income under (Discontinued operations) after eliminating unrecognized gain as the Company owns 13.65% in the equity of the associate Abdullah Al-Othaim for Real Estate Investment and Development company (the buyer). Other reasons for the increase in net income are growth in sales of existing and new branches by 14.15% and improvement in gross margin. In addition, subsidiaries and associates performance has improved because of stopping some loss making activities. |
| Reasons of increase (decrease) for period compared with same period last year | Consolidated net income increased by 112.69% for period ended 30 September 2017, compared with the corresponding period last year, mainly due to the non-recurring gains mentioned above amounted to SR 106.86 million in addition to the growth in sales during the current period from the existing and new branches by 13.21% and improvement in gross margin, as well as the increase in real estate revenues due to adding new leasable spaces. In addition, subsidiaries and associates performance has improved as a result of stopping some loss making activities. The results of the corresponding period includes a fire incident loss occurred at one of the manufacturing facilities of an associate; the financial impact of which amounting SR 8.6 million. |
| Reasons of increase (decrease) for quarter compared with previous quarter | Consolidated net income increased by 111.52% compared with the second quarter of the current year mainly due to the non-recurring gains mentioned above amounted to SR 100.08 million and improvement in gross margin despite the drop in sales by 17.25% and decrease in rent revenues as a result of the occurrence of Ramadan season in the previous quarter. |
| Reclassifications in quarterly financial results | Comparative figures have been restated to be consistent with the presentation of the current period in accordance with IFRS adopted in the Kingdom of Saudi Arabia along with the other standards and releases adopted by SOCPA. The adoption of IFRS has resulted in a decrease in the net income of the corresponding period by SR 1,376,029 and a decrease in shareholders equity by SR 5,640,865. These changes are mainly attributable to the application of IAS 19 - Employee Benefits, as well as the discontinuance of consolidating the financial statements of a subsidiary with the Group's consolidated financial statements, where the control terms over the subsidiary were not fulfilled in accordance with IFRS 10. |
| Other notes | 1. Total sales for the current quarter is SR 1,791.63 million against SR 1,569.57 million for the same quarter last year with a growth of 14.15% and against SR 2,165.24 million for the previous quarter with a decrease of 17.25%. 2. Total sales for the current period is SR 5,832.58 million against SR 5,151.96 million for the same period last year with a growth of 13.21%. 3. Total comprehensive income for the current quarter is SR 150.41 million against SR 34.15 million for the same quarter last year with an increase of 340.44% and against SR 70.13 million for the previous quarter with an increase of 114.47%. 4. Total comprehensive income for the current period is SR 280.13 million against SR 128.88 million for the same period last year with an increase of 117.36%. 5. Total shareholders' equity -net of non-controlling interest- as at the end of the current period is SR 1,423.49 million against SR 1,139.26 million at the same date last year with a growth of 24.95%. 6. Net income for the current quarter (without non-recurring gains of operating and selling the mall) is SR 50.54 million against SR 36.19 million for the same quarter last year with an increase of 39.65% and against SR 64.59 million for the previous quarter with a decrease of 21.75%. 7. Net income for the current period (without non-recurring gains of operating and selling the mall) is SR 175.12 million against SR 132.58 million for the same period last year with an increase of 32.09%. 8. Total comprehensive income for the current quarter (without non-recurring gains of operating and selling the mall) is SR 50.33 million against SR 34.15 million for the same quarter last year with an increase of 47.38% and against SR 63.50 million for the previous quarter with a decrease of 20.74%. 9. Total comprehensive income for the current period (without non-recurring gains of operating and selling the mall) is SR 173.27 million against SR 128.88 million for the same period last year with an increase of 34.44%. 10. Earnings per share for the current period (without non-recurring gains of operating and selling the mall) is SR 3.89 against SR 2.95 for the same period last year. |
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