Fawaz Abdulaziz Alhokair Co. announces the interim financial results for the period ending on 30-09-2017 (Six Months)
| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) | 6.84 | 66.82 | -89.76 | 232.41 | -97.06 |
| Gross profit (loss) | 300.12 | 315.61 | -4.91 | 550.46 | -45.48 |
| Operational profit (loss) | 86.21 | 109.86 | -21.53 | 306.04 | -71.83 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element | Current period | Similar period for previous year | % Change |
|---|---|---|---|
| Net profit (loss) | 239.24 | 290.01 | -17.51 |
| Gross profit (loss) | 850.57 | 884.41 | -3.83 |
| Operational profit (loss) | 392.24 | 428.57 | -8.48 |
| Earning or loss per share, Riyals | 1.14 | 1.38 | - |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element | EXPLAINATION |
|---|---|
| Reasons of increase (decrease) for quarter compared with same quarter last year | Our Net Profit amounted to SAR 6.8M with a Net Decline versus same quarter last year of 89.7%. Our second quarter was affected by several factors 1) we took additional provisions for slow moving inventory for SAR 11M, 2) Additioanl provision for SAR 18M in our foreign subsidiaries and 3) The decrease in other income due to foreign exchange losses of SAR 26M versus a gain last year of SAR 11M. 4) last year the last 4 days of Ramadan were part of the second quarter while this year it was part of quarter 1, 5) longer sales period leading to a very low margin, In this difficult context the company was able to show a better cost control leading to a Gross profit of 19.97% this quarter versus 18.96% same quarter last year with a drop of 4.91% in Gross Profit versus a drop in sales of 9.7% compared to same quarter last year. |
| Reasons of increase (decrease) for period compared with same period last year | The six months net income has decreased due to the decrease in sales 7% . the net income has been mainly impacted by the decline in Gross Margin due to discounts, the additional inventory provisions and the cost of the new stores. The company is in the process of developing more efficient new channels to clear slow moving inventory and following more strict buying policy to protect its margin. In this context additional provision for slow moving inventory was added for SAR 11M. It is important that the company took SAR 18M additional provision as result of the external audit of some subsidiaries outside Saudi Arabia. And that the company was impacted negatively by the appreciation of the Euro and the Sterling Pound in the first six months of this fiscal year. |
| Reasons of increase (decrease) for quarter compared with previous quarter | The decrease in the Net Profit of this quarter compared to previous quarter is mainly explained by the good impact of the Holy Month of Ramadan on the first quarter. |
| Reclassifications in quarterly financial results | Certain comparative figures have been reclassified to conform to current period's presentation |
| Other notes | Our total Sales for this Quarter amounted to 1,503 (one billion five hundred and three million riyals) compared to 1,665 (one billion six hundred and sixty five million riyals) in the same quarter last year with a decrease of 9.7%. Total Sales for this period amounted to 3,573 (three billion five hundred and seventy three million riyals) compared to 3,855 (three billion eight hundred and fifty five million riyals) in the same period of last year with a decrease of 7.3% The financial statement were prepared in accordance with IFRS and for more details on our accounting policies please refer to notes 5, 6 and 7 on the Notes annexed to our audit report as at end September 2017. It is important to note that some components were reclassified for the previous periods to align it with IFRS as at end of March 2017 and September 2017. The shareholders equity (no minority interest) as of end of current period is 2,966 Million compared to SAR 2,727.6 as of end of similar period with increase of 8.76%. The minority equity as of end of current period is 8 Million compared to SAR 6 M as of end of similar period with increase of 33% Total Comprehensive income for the current quarter was a loss of 9 Million compare to 205 Million for the previous quarter with a decrease of 104% and compared to 33 Million in the same quarter of last year with a decreased of 127% . Total Comprehensive income for the period 196.8 Million compared to 244.6 Million with a decreased of 19.5%. |
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