All figures are in (Millions) Saudi Arabia, Riyals
Element
EXPLAINATION
Reasons of annual financial results
The decrease in net income for current period compared to same period last year is mainly due to : Decrease in gross profit by SR 202.1 Million as a result of decrease in sales volume and prices, decrease in net other income and evaluation of non-effective portion of financial derivatives for hedging purpose by SR 17.4 Million whereas results of same period prior year included insurance claim of SR 17 Million for business interruption related to cement mill number 3 fire accident occurred in year 2012, decrease in group share of results in associated companies and dividends received from investment securities available for sale by SR 11 Million, increase in finance expenses by SR 12.2 Million, while minority/non-controlling interest in the results of subsidiary company had decreased by SR 10 Million, Zakat and income tax expense decreased by SR 6.9 Million
Reclassifications in annual financial results
The company had restated the presentation of the consolidated financial statements for the period ended 31/12/2016 to be in accordance with IFRS requirements
Other notes
a) Sales Revenue for the current year amounted to SR 905.7 Million, compared to SR 1256.9 Million for previous year, a decline of 27.9%. b) Other comprehensive income for the current year amounted to SR 197.8 Million, compared to SR 516.7 Million for previous year, a decline of 61.7%.c) Total shareholders' equity (excluding minority interest) for the current year amounted to SR 2,948.9 Million, compared to SR 3,251.1 Million for previous year, a decline of 9.3%.d) The company had completed first time adoption of IFRS starting 31 January 2017 to comply with capital market authority instructions. No significant changes to the financial results previously reported for the year ended 31 December 2016 were concluded as a result of first time adoption, except for the inclusion of annual board of directors remuneration amounting to SR 1.8 Million as part of general and administrative expenses whereas previously was treated as direct appropriation from retained earnings, as well as presenting investment property in a separate line item in the balance sheet instead of inclusion in property, plant and equipment.
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