| Element List |
Explanation |
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to |
The company achieved net profit of SR 34.7m vs. SR 33.8m for SPLY, The growth of net profit resulted from sales increase of all company's divisions across stores and e-commerce platform, in addition to higher eXtra services and consumer finance services revenue. Which led to an increase in company's gross profit by 17.4% vs. SPLY. Leading to increase in company's net profit by 2.5% despite of the following: 1) higher SG&A vs. SPLY generally and higher operating expenses related to United Company for Financial Services particularly, which started its operations in Q2 2019. 2)Booking non recurring income in Q1 2019 worth of SR 3.4m due to the initiative led by Ministry of Human Resources and Social development which related to refund of consolidated invoice for expat levies. 3) drop resulted from the early booking of SR 5.4m in consumer finance revenue due to securitization deal of a portion of the installment sales' receivable, which had a positive impact on Q2 2019 results with a total value of SR 17.2m. |
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to |
The company achieved net profit of SR 34.7m vs. SR 72.1m for last Quarter due to higher sales of last Quarter resulted from the Annual Mega Sale festival held by the company in Q4 2019, which led to increase both gross profit and net profit |
| Basis of the External Auditor's Opinion |
Unmodified opinion |
| Reclassification of Comparison Items |
Some comparative figures have been reclassified to be consistent with the presentation of the current period. |
| Additional Information |
During the first quarter of this year, with the spread of the Coronavirus (COVID 19) spread on the regional level, the company's management took several proactive measures to ensure the continuity of the company's operational activities and activate the precautionary plan for business continuity, which would ensure the achievement of the highest safety standards for the company's customers, employees and preserving the company's assets. And immediately dealing with any developments that may affect in one way or another the company's activities such as applying all of the precautionary measures in all of company's stores and warehouses, securing supply chain and stock availability, in addition to securing appropriate levels of liquidity to meet the company's obligations. Despite these challenges, the company’s operations during the first quarter of this year was not significantly impacted, as the precautionary measures implemented by the Kingdom’s government began in the second half of March 2020. The company's management continues to closely monitor the status quo to deal with any development could impact the company's markets and its operations. As part of our social responsibility and as a contribution from us in the management of national crises, and to support the initiative of (we are all responsible) and to support Ministry of Health fighting coronavirus outbreak, the company signed agreement with Health Endowment Fund on May 10 2020 to provide a mobile field hospital with a capacity of 100 beds according to The approved specifications for the Ministry of Health which will assist in the extensive coronavirus survey campaigns carried out by the Ministry of Health in many cities of the Kingdom. |
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