| Reasons of increase (decrease) for quarter compared with same quarter last year |
Net losses for the current quarter at both net and operational profits levels increased compared to the previous corresponding period, due mainly to a drop in sales by 36.6%. The drop in sales was due to competition and reduction in demand and decrease spending on real estate and construction projects and lower spending in retail sector due to expat leave. As a result of lower sales, gross profit for the current quarter decreased by 39.8% compared to the corresponding quarter in the previous year.
Additionally the general and administrative expenses increased by SR 3.2 million due to non-recurring expenses to exit from some of long term rent contracts, as well as reduced share of results from associates of SR 4.3 Million and decrease in the financing cost in the current quarter compared to the corresponding quarter in the previous year. |
| Reasons of increase (decrease) for period compared with same period last year |
Net losses for the current period at both net and gross profits levels increased compared to the previous corresponding period, due mainly to a drop in sales by 31.5%. The drop in sales was driven by competition and a reduction in demand and decrease spending on real estate and construction projects and lower spending in retail sector due to significant expat departures. The general and administrative expenses decreased by 13.3 % for the six month ended on 30 of June 2018 compared to the corresponding period from the previous year. The selling and distribution expenses also decreased by 17.3% and other expenses decreased by SR 9 Million. |
| Reasons of increase (decrease) for quarter compared with previous quarter |
The increase in the quarterly loss at net and operating level, and a decrease in gross profit were mainly due to decreased sales, which fell by 1.2% and increases in the cost of goods by 5.7%. compared to previous quarter. The general and administrative expenses increased by SR 5.6 million due to non-recurring expenses to exit from some of long term rent contracts and the selling and distribution expenses increased by SR 7.4 Million as a result of the advertising campaign to promote AC saving energy feature. |
| Reclassifications in quarterly financial results |
The comparative figures for 2017 of the Condensed Consolidated Interim Financial Statements have been reclassified to meet the current year classification according to International Financial Reporting Standards (IFRS) that are endorsed in the Kingdom of Saudi Arabia. |
| Other notes |
1- Total revenue for the current quarter amounted to SR 212.3 Million as compared to SR 335.1 Million for the same quarter of the previous year, with a decrease of 36.6%. and SR 214.9 million for the previous quarter with a decrease of 1.2 %. 2- The total revenues for the current period amounted to SR 427.2 Million compared to SR 623.4 million For the same period last year with a decrease of 31.5 %. 3- Total shareholders equity (excluding minority interests) as of June 30, 2018 amounted to SR 817.2 Million, compared to SR 1,008 Million as of June 30, 2017, decreasing by 19%. 4- Total comprehensive loss attributable to owners of the Company for the current quarter amounted to SR 36.6 Million as compared to SR 21 Million for the same quarter of last year, with an increase of 74.3%. The total comprehensive loss attributable to owners of the Company for the previous quarter amounted to SR 20.5 Million, which is an increase in losses by 78.5%, compared to the current quarter. 5- Total comprehensive loss attributable to owners of the Company for the current period amounted to SR 57.2 Million compared to loss SR 36 Million for the corresponding period with increase of 59 %. 6- The loss per share for the current period amounted to SR 0.91 compared to loss SR .057 for the previous period. 7- The type of audit report The External Auditors reviewed the Financial Statements and issued an unqualified report. The Company applied IFRS 15 and IFRS 9 starting from 1 January 2018 and there is no material impact on the Companys financial statements as a result of these changes. The Company has delivered an improvement in control of its expenses and has improved working capital. |
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