| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) |
47.01
|
48.89
|
-
|
89.23
|
-
|
| Gross profit (loss) |
279.37
|
212.36
|
31.55
|
316.73
|
-
|
| Operational profit (loss) |
50.39
|
42.25
|
19.27
|
85.27
|
-
|
| Earning or loss per share, Riyals |
1.04
|
1.09
|
-
|
-
|
-
|
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element | EXPLAINATION |
|---|---|
| Reasons of increase (decrease) for quarter compared with same quarter last year | The net income declined by 3.85% compared with the same quarter last year due to booking a precaution provision for a fire incident occurred during 2015 at one of the manufacturing facilities of a subsidiary owned by 55%. The fire resulted in a total loss of this facility assets. The Company's share in that loss was SR 11.33 million. The Company had booked part of its share in this provision which amounted to SR 2.75 million in the financial statements of the Company for the year 2015 as had been booked by the subsidiary. The rest of the provision amounting SR 8.6 million appeared in the interim consolidated financial statements of the Company for the first quarter 2016. It should be noted that the subsidiary is following up the claim with the insurance company. But due to delay in receiving the civil defense report which had not yet been received as of the date of these consolidated financial statements the provision was taken at full value of the lost assets. And, in the case of receiving indemnity from the insurance company, this provision will be recovered to the extent of the amount collected from the insurance company. Away of this aforementioned extraordinary loss, the Company achieved a growth in sales from the existing and new stores by 16.5%, an improved profit margins, and a growth in real estate rental income due to the increase in available spaces in addition to a growth in investment income. |
| Reasons of increase (decrease) for quarter compared with previous quarter | In addition to the above-mentioned fire accident in one of the industrial facilities of the subsidiary, which had a negative impact on the net income of the Company, other operating income in the fourth quarter 2015 includes annual targets incentives which are calculated and recognized at the end of the fiscal year, resulting in a rise in gross profit in the fourth quarter, compared with the current quarter, although, the sales grew by 5.6% and the investment income grew by 16.7%. In addition to the above-mentioned fire accident in one of the industrial facilities of a subsidiary, which negatively affected the net income of the Company. |
| Reclassifications in quarterly financial results | Some comparative figures have been reclassified to be consistent with the presentation of the current period. |
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