This is mainly attributed to the following:

-Higher gross profit due to higher sales and margins;

-Higher share of profits from associates;

-Lower operating expenses mainly due to the decrease in impairment losses;

-Lower net finance cost and zakat & income tax;

-An exceptional expense was recorded in the comparable period relating to an associate’s subsidiary ;and

-Zakat and tax provision reversal relating to prior years’ assessments for the subsidiaries.

In addition to the net profit performance as explained above, the total comprehensive income recorded for the current quarter compared to total comprehensive loss for the same quarter last year is mainly due to the following:

-Increase resulting from the fair value change in the “investments at fair value through Other Comprehensive Income” and

-Actuarial gain relating to the re-measurement of the defined benefit liability.

The increase in comprehensive income was recorded despite of the reduction in the share of associates’ other comprehensive income and the increase in the foreign currency exchange losses relating to the overseas subsidiaries due to devaluation and foreign currency translation impact.

The gross profits have increased in Q4 2019 compared to Q3 2019 due to the increase in sales and margins;

Despite of the increase in gross profit, the net profit performance of Q4 2019 as compared to Q3 2019 is attributed to the following:

-Decrease in the share of profits from associates;

-Increase in the operating expenses mainly impairment loss recorded in the current period;

-Slight increase in the net finance cost; and

-Increase in the zakat and income tax.

In addition to the net profit performance as explained above, the decrease in the total comprehensive income recorded for the 4th Quarter 2019 compared to total comprehensive income for the 3rd quarter 2019 is mainly due to the increase in the foreign exchange losses relating to the overseas subsidiaries due to devaluation and foreign currency translation impact.

The decrease in total comprehensive income was recorded despite of the actuarial gain relating to the re-measurement of the defined benefit liability and the increase in the share of associates’ other comprehensive income.

The profit achieved is mainly attributed to the following:

-Higher gross profits due to higher sales and margins;

-Higher share of profits from associates;

-Lower operating expenses mainly due to the significant decrease in the impairment losses;

-An exceptional expense was recorded in the comparable period relating to an associate’s subsidiary; and

-Zakat and tax provision reversal relating to prior years’ assessments for the subsidiaries.

The net profit for the year was achieved despite of the increase in the net finance cost resulting mainly from the adoption of new leasing standard (IFRS 16) applied during 2019, being partially compensated by the reduced foreign currency exchange losses;

In addition to the net profit achieved as disclosed above, the total comprehensive income achieved for the year ended 31 December 2019 compared to the total comprehensive loss for the year ended 31 December 2018 is attributed to the following:

-Significant decrease in the foreign currency exchange losses relating to the overseas subsidiaries;

-Increase resulting from the fair value change in the “investments at fair value through Other Comprehensive Income”; and

-The impact of actuarial gain relating to the re-measurement of the defined benefit liability

The increase in total comprehensive income was recorded despite of the decrease in the share of other comprehensive income relating to “investments in equity accounted investees”.

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