1212 · 20/01/2016 17:17:22 · Announcement #40915 · View on Saudi Exchange

Astra Industrial Group announces the interim financial results for the period ending on 31-12-2015 (Twelve Months)

Element Current quarter Similar quarter for previous year % Change current Previous quarter % Change previous
Net profit (loss)
-
25,723,116
-
9,459,878
-
Gross profit (loss)
107,804,260
158,773,274
-
130,002,899
-
Operational profit (loss)
-
20,563,200
-
1,916,776
-
All figures are in Saudi Arabia, Riyals
Element Current period Similar period for previous year % Change
Net profit (loss)
6,468,395
109,331,339
-
Gross profit (loss)
582,400,722
604,633,133
-
Operational profit (loss)
-
59,896,410
-
Earning or loss per share, Riyals
0.08
1.36
-
All figures are in Saudi Arabia, Riyals
Element EXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last year Net profit decrease in general due to:

A) Lower sales and gross profit margins in Pharmaceutical sector partially offset by improvement in gross profit margins in Power and Steel sectors

B) Decrease in operating income mainly due to increase in selling and marketing expenses driven by additional provisions on accounts receivables in the Pharmaceutical sector

C) Increase in other expenses mainly resulting from currency exchange losses in the Pharmaceutical sector
Reasons of increase (decrease) for period compared with same period last year Net profit decrease in general due to:

A) Increase in other expenses mainly from currency exchange losses in the following sectors:

i) Pharmaceuticals sector
ii) Specialty Chemicals sector

B) Decrease in operating income mainly due to increase in selling and marketing expenses in all sectors driven by additional provisions on account receivables

C) Lower sales in the following sectors:

i) Pharmaceuticals sector
ii) Power and Steel sector

While noting it has been partially offset by lower losses in Power and Steel sector
Reasons of increase (decrease) for quarter compared with previous quarter Net profit decrease in general due to:

A) Decrease in operating income mainly due to higher operating expenses in Pharmaceuticals sector

B) Despite the increase in sales, there was a decrease in Gross Profit resulting from lower gross profit margins in the following sectors:

i) Pharmaceuticals sector
ii) Power and Steel sector

C) Increase in other expenses mainly resulting from currency exchange losses in Pharmaceutical sector
Reclassifications in quarterly financial results Certain comparative figures for the previous period have been reclassified to be consistent with the presentation of the current period.
Other notes Comparative Figures:

Comparatives figures for the similar twelve months period of the last year are from the Audited Financial Statements

Fourth Quarter Results:
In light of the economic downturn in many of the markets in which we operate, the company decided to take a conservative approach towards the realisable value of receivables and inventories. Based on this, additional provisions were made which had played additional role along with the previously mentioned factors on affecting the fourth quarter results.

Earnings Per Share:
During the period, the Extraordinary General Assembly, in its annual meeting held on 9 Rajab 1436H (corresponding to 28 April 2015), has resolved to increase the share capital by SR 58,823,530 from the retained earnings (by issuing five bonus shares for every 63 shares held). The legal formalities have been completed. Earnings per share has been calculated for this period and comparative period of last year based on number of shares 80,000,000/-

Tanmiah Steel Company:
In light of the continued shutdown of Tanmiah steel ( that is owned 51% by Astra Industrial Group) plant, the company carried out a fair value assessment. As a result, Tanmiah Board of Directors decided to write down the assets by SR164M. This write down was booked as charge to the income statement of Tanmiah company. This write down had no impact on Astra Industrial Group (AIG) consolidated results as it relates to the capitalized borrowing cost that AIG used to eliminate in the consolidation process.

Subsequent to the company's assessment, independent auditors of Tanmiah and AIG carried out an impairment review of fair value of the company and concluded no impairment is required.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.