Fawaz Abdulaziz Alhokair Co. announces the interim financial results for the period ending on 31-12-2017 (Nine Months)
| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) | 48.69 | 49.26 | -1.16 | 6.84 | 611.84 |
| Gross profit (loss) | 318.71 | 311.56 | 2.29 | 300.12 | 6.19 |
| Operational profit (loss) | 89.02 | 93.81 | -5.11 | 86.21 | 3.26 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element | Current period | Similar period for previous year | % Change |
|---|---|---|---|
| Net profit (loss) | 287.94 | 339.27 | -15.13 |
| Gross profit (loss) | 1,169.28 | 1,195.97 | -2.23 |
| Operational profit (loss) | 481.27 | 522.38 | -7.87 |
| Earning or loss per share, Riyals | 1.37 | 1.62 | - |
| 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 48.7M was stable compared to same quarter last year at SAR 49.3M while our net sales amounted to SAR 1,350M this quarter was SAR 80.7M or 5.6% below last year same quarter. This good performance was a direct result of the good control of Cost of Sales which decreased by SAR 87.8M (-7.9%) versus last year same quarter. The improvement of the Cost of Sales is attributable to: 1) a lower Cost of Goods Sold by SAR 63.8M, 2) lower Rent by SAR 52M; while some components such as Provision for slow moving inventory, Staff Cost and Packing Material have increased respectively by SAR 13.6M, SAR 10.9M and SAR 13.9M. As result of Cost of Sales Control, the company was able to show a Gross Profit of 23.6% of Net Sales for this Quarter as compared to 21.8% for the same quarter last year. The improvement in Gross Profit by SAR 7.1M in this Quarter versus the same Quarter Last year was offset by the increase in the following cost components: 1) Selling and Distribution Expenses by SAR 9.3M; 2) Depreciation and Amortization Expenses by SAR 2.6M and 3) Finance Cost by SAR 3.1M. |
| Reasons of increase (decrease) for period compared with same period last year | The nine months net income has decreased by SAR 51.3M due to: 1) decrease in sales 6.9% and its impact on Gross Profit by SAR 26.7M, 2) increase in The Selling and Distribution Expenses for this Period have increased by SAR 26.3M and 3) increase in the cost of manpower and related matters by SAR 25.5M.It is important to note that the Gross Profit in terms of % of Net Sales for this Period was 23.8% versus 22.6% for same Period Last Year as result of Lower Rent by SAR 133M versus Last year and Lower provision for low moving inventory SAR 59M as result of a more efficient channels to clear the aged inventory and a more strict buying policy.The General & Administrative Expenses have decreased by SAR 6.5M as result of strict control on head-office and back-office costs. |
| Reasons of increase (decrease) for quarter compared with previous quarter | The Net Profit of this quarter amounted at SAR 48.6M is 611% higher than the previous quarter which amounted to SAR 6.8M. the previous quarter suffered from some one-off cost for over SAR 40M. |
| 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 1,350 Million (one billion three hundred and fifty million riyals) compared to 1,430 Million (one billion four hundred and thirty million riyals) in the same quarter last year with a decrease of 5.6%. Total Sales for this period amounted to 4,923 Million (four billion nine hundred and twenty three million riyals) compared to 5,286 Million (five billion two hundred and eighty six million riyals) in the same period of last year with a decrease of 6.9%. 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 December 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 December 2017. The shareholders equity (no minority interest) as of end of current period is 2,983 Million compared to SAR 2,623.6 Million as of end of similar period with increase of 13.7%. The minority equity as of end of current period is -12.4 Million compared to SAR -17.3 M as of end of similar period with increase of 28.3%. Total Comprehensive income for the current quarter was a profit of SAR 12.8 Million compare to a loss of SAR 9 Million for the previous quarter and compared to a loss of 115.6M Million in the same quarter of last year . Total Comprehensive income for the period SAR 209.7 Million compared to SAR 129 Million with an increase of 63%. |
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