The Agricultural development company (NADEC) announces its annual financial results for the period ended on 30 Sep 2017 (Nine Months)

NADEC 6010 -0.25% 31.98 -0.08
Element Current quarter Similar quarter for previous year % Change current Previous quarter % Change previous
Net profit (loss) 17.33 28.65 -39.51 25.89 -33.06
Gross profit (loss) 179.16 203.74 -12.06 203.13 -11.8
Operational profit (loss) 24.33 49.05 -50.4 44.39 -45.19
All figures are in (Millions) Saudi Arabia, Riyals
Element Current period Similar period for previous year % Change
Net profit (loss) 47.55 87.97 -45.95
Gross profit (loss) 565.58 651.29 -13.16
Operational profit (loss) 93.17 140.79 -33.82
Earning or loss per share, Riyals 0.56 1.04 -
All figures are in (Millions) Saudi Arabia, Riyals
Element EXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last year The decrease in net income in the current quarter compared to the similar quarter last year is due to the decline in total compamy sales by 7.17% in which reflected the market performance in totality where dairy and food processing sector's sales declined by7.60% compared to the similar quarter last year and agricultural sector's sales declined by 3.40% while the cost of production reduced by 4.30% due to the decline in sales this decline in sales negatively affect the gross marginby 12.07% in this quarter compared to the similar quarter last year, on the other hand the selling and marketing expenses increased by 5.49% while the admionistrative cost decreased by 21.08% as a result of cost cutting program. The negative impact from income from other operating income and expenses decreased compared to the similar quarter last year all the revious elements resulted in a reduction in the operating income by 50.41%, on the other hand the financing charges and banks facilities decreased and zakat provision decreased due to the receiving of the final Zakat return of previous years which is positively impacted the net income of the quarter compared to the similar quarter last year.
Reasons of increase (decrease) for period compared with same period last year The decrease in net income in the current period compared to the similar period last year is due to the decline in total compamy sales by 7.47% in which reflected the market performance in totality while the production cost decreased by 3.93% due to the decline in sales which affect the gross profit negatively by 13.16%, gross profit have been also afeected by the increase in energy prices on the other hand the selling and marketing expenses have been reduced by 0.64% affected by the cost cut program launced by the company management which also reduced the general and administrative cost by 20.19% compared to the similar period last year on the other hand the income from other operating income and expenses increased due to the sell out of Taseel shares. the all previous performance decreased the operating income by 33.82% compared to the similar period last year. on the other hand financing cost increased due to the increase in borrowing cost while Zakat provision decreased and positively affect the net income, it is well noted to say that the total company sales declined by 7.61% driven by a decline in Dairy and food processing sector which is delined by 6.26% and Agri Sector which is declined by 17.81%%.
Reasons of increase (decrease) for quarter compared with previous quarter Due to total company sales decline by 11.73% where dairy and food processing sales declined by 11.95% and agricultural sector sales declined by 9.86% agri sales performance usually affected by the seasonality and crops seasonality harvesting as a result in Sales decline the gross margin decreased by 11.80% which negatively affected the net income of the quarter compared to the previous quarter on the otherhand Sales and marketing cost decreased and the income from other operating income and expenses decreased which negatively affect the net income. all the above performance resulted in a decrease in the operating income in the current quarter compared to the previous quarter on the other hand financing cost and banks facilities and zakat provision decreased which positively affected the net income.
Reclassifications in quarterly financial results The company applied the international financial reporting standards starting the first of January 2017 and the following periods, therefore the company restated the comapartive financial statements to reflect the changes in measurements, disclosure and accounting policy to be complied with IFRS requirements and the other standards and requirements issued by SOCPA. for more details refere to note No. 6 in the company's financials (application of IFRS for the first time adopters) attached to the financails for the period end on 31st March 2017.
Other notes 1. The comprehensive income for the current quarter reached SR.17.33 M compared to 29.69 M for the similar quarter last year with a decrease of 42% 2. The comprehensive income for the current period reached SR.47.55 M compared to 91.09 M for the similar quarter last year with a decrease of 48% 3. The comprehensive income for the current quarter reached SR.17.33 M compared to 25.89M for the previous quarter with a decrease of 33% 4. Total revenue for the current quarter reached SR. 510.76 m compared to SR. 550.24 M similar quarter last year with a decrease of 7.17% 5. Total revenue for the current period reached SR.1,571.34 m compared to SR. 1,698.18 M similar period last year with a decrease of 7.46% 6. The share holders equity till the end of the period (no minority equity) is SR. 1,442.7 M compared to SR. 1,418.2 M as end of December 2016 with an increase of 1.72% 7.The reported earnings per share has been calculated for the similar period of last year on the basis of 84.7 million shares reflecting the bonus shares that has been approved by Extra ordinary general assembly on 29th Jumada Al-Thani 1437 corresponding to 7th April 2016

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