| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) |
-
|
10.34
|
-
|
-
|
-
|
| Gross profit (loss) |
10.52
|
47.96
|
-
|
24.63
|
-
|
| Operational profit (loss) |
-
|
21.71
|
-
|
-
|
-
|
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element | Current period | Similar period for previous year | % Change |
|---|---|---|---|
| Net profit (loss) |
-
|
50.41
|
- |
| Gross profit (loss) |
60.05
|
159.3
|
- |
| Operational profit (loss) |
-
|
78.35
|
- |
| Earning or loss per share, Riyals |
-
|
0.42
|
- |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element | EXPLAINATION |
|---|---|
| Reasons of increase (decrease) for quarter compared with same quarter last year | The company losses in Q3 of 2015 compared with same Quarter of the previous year are attributable to fall in company products selling prices and many other reasons as follow::1-Decline in the sales for the current quarter compared with same quarter of the previous year amounting to SAR 46 million represented 21 % resulting in lower gross profit by 78 % over the same quarter of the previous year due to the continued decline in methanol prices globally which in turn affect the pricing of some of the company products due to the volatility in the global economy and increasing competition in the sale main areas for the company products in local markets, India, China and East Asia resulting in a decline in the prices and prompting the company to provide additional discounts in order to maintain market share.2-Slow moving items inventory was reclassified and that resulted in taking additional provisions of SAR 9.88 million to comply with the Accounting Standards. This has affected the results of the current quarter adversely compared to the same quarter of the previous year where it has been showed in other provision item.3-Appropriation of SAR 13.7 million additional provision to cover potential price differences of one of the Company suppliers which have not been settled yet to comply with the Accounting standards where it has been showed in other provision item. |
| Reasons of increase (decrease) for period compared with same period last year | The company losses in current period (9 Months) of 2015 compared with the same (9 Months) of the previous year by 107 million that represented 16 % are attributable to a number of reasons:1- The continued decline in methanol prices globally which in turn affect the pricing of some of the company products due to the volatility in the global economy and increasing competition in the sale main areas for the company products in local markets, India, China and East Asia, resulting in a decline in the prices and prompting the company to provide additional discounts in order to maintain market share.2-Shut down of Paraformaldehyde plant till end of the first quarter 2015 due to the fire incident announced on Tadawel website on 13/07/2014.3-Slow moving items inventory was reclassified and that resulted in taking additional provisions of SAR 9.88 million to comply with the Accounting Standards. This has affected the results of the current period adversely compared to the same period of the previous year where it has been showed in other provision item.4-Appropriation of SAR 13.7 million additional provision to cover potential price differences of one of the Company suppliers which have not been settled yet to comply with the accounting standards where it has been showed in other provision item.In addition some other reasons have affected the current period results compared to the same period in the previous year which are:1-Write-off SAR 6.3 million from other net income and expense account for some expenses related to projects which have been postponed till the global economy improves.2-General & Administrative expenses has increased by SAR 5.72 million due to increase in the salaries and benefits in the current period compared with the same period in 2014 in addition to some positive adjustment which affected positively on the previous period in 2014.3-In quarter 2 2014 the company had gained SAR 4.8 million from Zakat & Income Authority against Zakat adjustments which affected positively on that period in 2014 compared with the same period in 2015. |
| Reasons of increase (decrease) for quarter compared with previous quarter | 1- Increase in losses is attributable in the sales volume for the current quarter compared with the previous quarter amounting to SAR 22 million represented 11 % due to official holidays and Eid season in KSA in addition to slowdown of the construction sector which resulted to postpone the sales of some products. 2- Decrease in the cost of sales by 10.35 million represented 6 % due to decline in the raw materials cost and decrease in sales in the current quarter compared with the previous quarter. 3- Decrease in selling & distribution expenses by SAR 6 million in the current quarter compared with the previous quarter due to decrease in Sales.4- General & Administration expenses decreased by SAR 3 million due to decrease in professional fees in the current quarter compared with the previous quarter.5- Slow moving items inventory was reclassified and that resulted in taking additional provisions of SAR 9.88 million to comply with the Accounting Standards. This has affected the results of the current quarter adversely compared to the previous quarter where it has been showed in other provision item.6- Appropriation of SAR 13.7 million additional provision to cover potential price differences of one of the Company suppliers which have not been settled yet to comply with the accounting standards where it has been showed in other provision item.7- The finance cost has declined by 18 % in the current quarter compared with the previous quarter due to repayment of some loans. |
| Reclassifications in quarterly financial results | Comparative figures have been reclassified to conform to the current period presentation. Such reclassification did not affect either net worth or net income |
| Other notes | 1- Decrease in selling & distribution expenses by SAR 3 million in the current quarter compared with the same quarter in the previous year due to decrease in sales. 2- The finance cost has declined by 24 % in the current quarter compared with the same quarter in the previous year and has declined by 20 % in the current period compared with the |
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