The National Building and Marketing Company announces its consolidated annual financial results for the period ending on 31/12/2021
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 660,280 | 286,734 | 130.276 | ||
| Gross Profit (Loss) | 103,125 | 38,410 | 168.484 | ||
| Operational Profit (Loss) | 87,174 | 27,827 | 213.271 | ||
| Net Profit (Loss) after Zakat and Tax | 80,679 | 30,446 | 164.99 | ||
| Total Comprehensive Income | 82,405 | 30,768 | 167.826 | ||
| Total Share Holders Equity (after Deducting Minority Equity) | 241,411 | 159,006 | 51.825 | ||
| Profit (Loss) per Share | 6.72 | 2.54 | |||
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | The NBM achieved positive business results with an improvement in the net income ratio from 10.62% (adjusted) in 2020 to 12.22% in 2021 for the following reasons:
- Sales of the industrial sector increased from 213 million riyals to 366 million riyals, an increase of 69.44% - Building materials sales (including construction and trading) increased from 73 million riyals to 294 million riyals. - Financing costs decreased from 8 million riyals to 6 million riyals, a decrease of 31.35% - The gross profit ratio increased from 13.40% (adjusted) in 2020 to 15.62% in 2021
Among the most important factors to the company's business results are the following:
1. Ajeej Steel Factory Company (a wholly owned subsidiary) follows a policy of inventory, quantities of raw materials to cover its production needs for medium-term future periods to reduce operational and market risks from price fluctuations, and it had a direct positive impact on the average cost price and the company's profits in general. 2. The performance of the Saudi building market improved during the year 2021, the increase in demand for various basic building materials products and the improvement in selling prices, which contributed to an increase in the quantities sold. 3. The company followed the policy of contractual sales with customers and the continuous supply of their projects, which increasing the company's working capital cycle. |
| Statement of the type of external auditor's report | Unmodified opinion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | N/A |
| Reclassification of Comparison Items | Certain comparative figures for the year ended January 01, 2020 and December 31, 2020 have been reclassified to conform to the current presentation. |
| Additional Information | 1. Basic and diluted earnings per share were calculated by dividing the profit for the period attributable to the equity of the company (National Building and Marketing) by the weighted average number of shares issued.
2. Total shareholders’ equity at the end of the financial year ending on 12/31/2021 amounted amount of 241 million riyals, compared to the year ended on 31/12/2020 (adjusted) an amount of 159 million riyals, an increase of 51.83% 3. The financial statements of the company (National Building and Marketing and its subsidiary Ajeej Steel Manufacturing) have been consolidated for the year ending on 12/31/2021 compared to the financial year ending on 31/12/2020 (Adjusted) as a subsidiary company based on a result of the control by the National Company for Building and Marketing as of From the date of control 01/01/2021 AD. 4. The classification of investments at fair value through other comprehensive income has been corrected to investments in sister company due to the presence of influential influence through the board members of the company (National Building and Marketing) and the proof of the investment using the equity method. |
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