| Reasons of increase (decrease) for quarter compared with same quarter last year |
The decrease in net profit in the current quarter compared to the similar quarter last year by 24.63% is due to :- Sales Revenue: the Sales revenue declined for the total company by 3.27% in which reflects the market performance; dairy and food processing sector's sales declined by 7.17% compared to the similar quarter last year due to impacts of lower demand and the decline in export market sales whereas agricultural sector's sales revenue increased by 30.36. Gross Profit: Gross profit increased by 4.56% due to continuing focus on driving production efficiencies and cost control which resulted in a lower production cost by 7.50% partly offsetting the decline in sales. Selling and Marketing expenses: The companys management continues to drive focus behind cost reduction which resulted in a reduction in selling and marketing expenses by 6.42% compared to the similar quarter last year. General and adminstrative expenses: The general and administartive expenses increased by 33.35% due to increased spending on professional and consultancy fees to support projects in line with the company's strategic growth direction. Other income and expenses: The losses reported in other income and expenses line is mainly due to the one-off profit recognized in the similar quarter last year for the sell out of equity investment (Tassel) that results in a negative impact on other income and expenses line this quarter. Operational profit: Operational profit decreased by 13.77% due to the decline in sales and the increase in general and administrative expenses as well as the increase in the losses in ther income and expenses. Financing charges increased by 1.93% due to the increase in borrowing costs while Zakat provision decreased by 4.88% in totality. All these elements reduced the net income of the current quarter compared to the similar quarter last year. |
| Reasons of increase (decrease) for period compared with same period last year |
The decrease in net profit in the current period compared to the similar period last year by 52.06% is due to:- Sales Revenue: the decline in total compamy sales by 2.52% in which reflect the market performance and the low demand in totality , where sales revenue of the dairy and food processing sector decreased by 5.74% while the sales revenue of Agricultural sector increased by 31.56%. Gross profit: Gross profit decreased by 2.98% affected by the increase in the industrys input costs. Selling and marketing expenses: Selling and marketing expenses decreased by 9.12% due the reduction in some items of expenses as an impact of the cost cutt programs. General and administarative expenses: general and administarative expenses increased by 17.55% due to higher spending on professional and consultancy fees to support projects in line with the company's strategic direction for growth. Other income and expenses: the increase in loses in the OIE line is mainly due to the profit recognized in the same period last year for the sell out of equity investment (Taseel) which negatively impacted the net profit of the current period. Operational profit: Operational profit decreased in the current period by 27.47% compared to similar period last year due to the decline in sales as well as the impact of the equity investment sell out same period last year. Financing charges reduced by 8.46% in the current period due to the increase in qualified assets value where it allow the company to capitalize part of its financing charges as well as there is a reduction in zakat provisions by 5.20% which in totality reduced the net income of the current period. |
| Reasons of increase (decrease) for quarter compared with previous quarter |
The increase in net income this quarter compared to the previous quarter is due to:- Sales Revenue:- Sales revenue increased by 18.06% where the sales revenue of Dairy and food processing sector increased by 11.36% and this is due to the seasonality impact and the consumption behavior changes during the holy month of Ramadan. The agricultural sales also increased by 87.18% where the revenue of agricultural sector is affected by the seaonal changes and the differences in planatation and harvesting periods. Gross profit: Gross profit increased by 30.67% due to the increase in sales and production effecincy. Selling and Marketing expenses: Selling and Marketing expenses increased by 22.91% compared to the previous quarter due to sales increase. General and administrative expenses: General and administrative expenses increased by 11.84% due to higher spending on proffesional and consultancy fees. Other income and expenses: the loses in the other income and expenses line reduced compared to the previous quarter by 68.64% due to more sales in raw milk. Operational profit: Operaional profit increased by 228.17% compared to the previous quarter due to Sales increase and production effeciency. Financing charges increased by 13.52% due to the increase in the cost of money with the same level of Zakat provision in which all impacted the net profit positivly compared to the previous quarter. |
| Reclassifications in quarterly financial results |
Notes, disclosure and elements of the comparatives Interim condensed Financial Statements have been represented, regrouped or reclassified to meet the applied accounting policies for the current period which have been prepared according to the International Financial Reporting Standards (IFRS) which is endorsed by SOCPA to reflect any changes in the accounting policy. For more information refer to the note (B-3) that related to accounting policy changes. External Auditors opinion: External auditors opinion is unmodified |
| Other notes |
1- The comprehensive income for the current quarter reached SR.19.51 M compared to25.9 M for the similar quarter last year with a decrease of 24.63% 2- The comprehensive income for the current period reached SR.14.49 M compared to 30.2 M for the similar quarter last year with a decrease of 52.06% 3- The comprehensive income for the current quarter reached SR.19.51 M compared to (5.0) M for the previous quarter. 4- Total revenue for the current quarter reached SR. 559.7 M compared to SR. 578.6 M for the similar quarter last year with a decrease of 3.27% 5- Total revenue for the current period reached SR.1,033.8 M compared to SR. 1,060.5 M for the similar period last year with a decrease of 2.52% 6- the gross profit for the current quarter reached SR. 212.38 M compared to SR. 203.1 M for the similar quarter last year with an increase of 4.56%. 7- the gross profit for the period reached SR. 374.9 M compared to SR. 386.4 M for the same period last year with a decrease of 2.98%. 8- The operational profit for the current quarter reached SR. 38.27 M compared to SR. 44.4 M for the similar quarter last year with a decrease of 13.77%. 9- The operational profit for the current period reached SR. 49.94 M compared to SR. 68.84 M for the similar period last year with a decrease of 27.47%. 10- The share holders equityas of 30 June 2018 (no minority equity) is SR. 1,439.81 M compared to SR. 1,425.32 M as end of December 2016 with an increase of 1.02% 11-TThe earning per share for the current period is SR. 0.17 compared to 0.36 for the same period last year. |
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