The decrease in net profit of 2017 comparative to 2016 is mainly due to increase in selling and marketing expenses, general and administrative expenses, and finance costs.
Reclassifications in annual financial results
Herfy has adopted the International Financial Reporting Standards (IFRS) effective January 1, 2017. Accordingly, some changes in the Company financial statements have been made in a number of items in the measurement, recognition, presentation and disclosure method for the current and comparative year in accordance with the accounting policies adopted in accordance with IFRS and other standards endorsed by the Saudi Organization for Certified Public Accountants
Other notes
The estimated turnover for the year ended 31st December 2017 amounted to 1157.8 M SAR increase of 0.09% compared to the last year SR 1,157.7 m. Total estimated comprehensive income for the year ended 31st December 2017 amounted to 200 MSAR a decrease of-8.02% compared to the last year 217.5 MSAR The estimated total shareholder's equity (no minority interest) as of 31st December 2017 amounted to 866.97 M SAR an increase of 6.7 % as compared to 812.5 M SAR as of 31st December 2016. - The financial statements of 2017 are the first annual financial statements prepared in accordance with IFRS as endorsed in the Kingdom. Earnings per share has been calculated on the basis of total number of shares after the increase of share capital from 46.2 million shares to 64.68 million shares, which were issued after the EOGM approval on 22/5/2017. The comparative period earnings per share have been adjusted to reflect the said share issue. It bears mention that 25 restaurants were opened during the 2017.
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