Red Sea International 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) | -12.7 | 10.5 | - | -5.6 | -126.79 |
| Gross profit (loss) | 23.5 | 60.4 | -61.09 | 29.5 | -20.34 |
| Operational profit (loss) | -7.2 | 20.6 | - | -2.1 | -242.86 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element | Current period | Similar period for previous year | % Change |
|---|---|---|---|
| Net profit (loss) | -9.5 | 73.4 | - |
| Gross profit (loss) | 98.3 | 205.4 | -52.14 |
| Operational profit (loss) | 6.3 | 95.2 | -93.38 |
| Earning or loss per share, Riyals | -0.2 | 1.2 | - |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element | EXPLAINATION |
|---|---|
| Reasons of increase (decrease) for quarter compared with same quarter last year | There was a Net loss attributable to Shareholders of the Company for the current quarter as compared to Net profit for the same quarter last year primarily due to the decrease in gross profit by SAR 36.9 million, this decrease is primarily due to reduction in gross profit margin from 24.1% for the same quarter of last year to 12.6% recorded in the current quarter which has resulted from the decrease in revenues generated from buildings' sales by 29.9% and the decrease in rental sales by 23.2% . However operating expenses have been reduced by SAR 9.1 million during the current quarter primarily due to the decrease in Selling and Marketing & General and Administrative expenses driven by a decrease in employee expenses and doubtful debt provisions. Furthermore, the Company's finance cost was reduced by SAR 2.3 million compared to the same quarter last year. |
| Reasons of increase (decrease) for period compared with same period last year | For the first nine months of 2017, The Company recorded a net loss attributable to Shareholders compared to net profit for the same period of last year. This is primarily due to the decrease in gross profit by SAR 107.1 million, which is attributed to the decrease in gross profit margin from 26.0% for the same period of last year to 16.1% recorded in current period which resulted from the decrease in revenues from rental sales by 23.1% and buildings' sales by 22.5%. However, operating expenses have been reduced by SAR 18.2 million during the current period compared to the same period of last year due to the decrease in Selling and Marketing & General and Administrative expenses by 10.1% as result of the reduction in employees' costs driven by cost control, operational efficiencies and reduction in doubtful debt provisions. |
| Reasons of increase (decrease) for quarter compared with previous quarter | Net loss attributable to Shareholders of the Company in the current quarter has increased compared to the previous quarter primarily due to the decrease in gross profit by SAR 6.0 million. This decrease is due to the reduction in gross profit margin from 14.9% for the previous quarter to 12.6% for the current quarter, which has resulted from the decrease in overall revenues by 6.3%. However, operating expenses have been reduced by SAR 0.9 million during the current quarter compared to the previous quarter due to the decrease in Selling and Marketing & General and Administrative expenses by 5.1% primairly as result of the reduction in employees' cost driven by cost control and operational efficiencies and reduction in doubtful debt provisions. |
| Reclassifications in quarterly financial results | Items, elements and notes of the comparatives Condensed Consolidated Interim Financial Statements have been redisplayed, regrouped and reclassified to conform with the applied accounting policies for the current period which have been prepared according to the International Financial Reporting Standards (IFRS) that are endorsed in the Kingdom of Saudi Arabia. For more information, please see the note 5 (First time adoption of IFRS) in the Interim Consolidated Financial Statements for the period ended in 30 September 2017. |
| Other notes | The total revenue for the current quarter is SAR 186.2 million compared to SAR 251.3 million generated during the same quarter of last year, which represents a decrease of 25.9%. The total revenue for the nine months period ending 30 September 2017 is SAR 612.4 million compared to SAR 790.4 million generated during the same period of last year, which represents a decrease of 22.5%. The Comprehensive loss attributable to Shareholders of the Company for the current quarter is SAR 12.5 million compared to comprehensive income of SAR 10.2 million recorded in the same quarter of last year. Also compared to comprehensive loss of SAR 3.7 million for the previous quarter. The Comprehensive loss for the period attributable to Shareholders of the Company for the nine month period ended 30 September 2017 is SAR 9.3 million compared to comprehensive income of SAR 68.8 million for the same period of last year. The Net Shareholders' Equity (excluding minority interest) as at 30 September 2017 is SAR 881.6 million compared to SAR 919.3 million as at 30 September 2016, which represents an decrease of 4.1%. |
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