| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 604.19 | 559.72 | 7.945 | 530.47 | 13.897 |
| Total Profit (Loss) | 227.57 | 212.38 | 7.152 | 203.27 | 11.954 |
| Profit (Loss) Operational | 52.21 | 38.27 | 36.425 | 37.52 | 39.152 |
| Net Profit (Loss) after Zakat and Tax | 7.07 | 19.51 | -63.762 | -3.67 | - |
| Total Comprehensive Income | 7.07 | 19.51 | -63.762 | -3.67 | - |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 1,134.66 | 1,033.8 | 9.756 |
| Total Profit (Loss) | 430.85 | 374.92 | 14.917 |
| Profit (Loss) Operational | 89.73 | 49.94 | 79.675 |
| Net Profit (Loss) after Zakat and Tax | 3.39 | 14.49 | -76.604 |
| Total Comprehensive Income | 3.39 | 14.49 | -76.604 |
| Total Share Holders Equity (after deducting minority equity) | 1,449.65 | 1,439.81 | 0.683 |
| Profit (Loss) per Share | 0.04 | 0.17 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| Reason for increase (decrease) in net profit for current quarter compared to the same quarter of the previous year | The decrease in the Company’s net profit in the current quarter compared to the similar quarter last year by 63.76% is due to: |
- Losses on derivative financial instruments:
During the current quarter, the Company assessed the expected future interest rate movement, and accordingly, decided to terminate the Callable Inverse Floater (CIF) contracts and recognised the loss on the termination of the same, which amounted to SAR 19.16 million for the current quarter.
The net unrealized loss on Cross-Currency Swaps amounted to SAR 5.55 million is recognized during the current quarter.
Hence, the derivative financial instruments impacted the net profit negatively during the current quarter with a loss of SAR 24.71 million which is the primary reason for the decrease in the net profit for the current quarter compared to the similar quarter last year.
-Finance costs:
Finance costs and bank facilities increased in the current quarter compared to the similar quarter last year by 9.84% despite the reduction in the total outstanding loans in the current quarter compared to the similar quarter last year due to increase in market borrowing rate and Bank charges.
- Impairment Losses on Trade Receivables:
The expected credit loss assessment on trade receivables had negative impact on the net profit of the current quarter. The impairment loss for the current quarter is SAR 2.91 million compared to a reversal of the impairment loss of SAR 0.35 million in the similar quarter last year with a net increase in the impairment loss of SAR 3.26 million.
-Selling and Marketing expenses:
Selling and marketing expenses increased in the current quarter compared to the similar quarter last year by 2.85% due to increase in sales volume and spending on marketing activities and promotional expenses.
Despite the changes in preceding elements that negatively impacted the net profit of the Company in the current quarter, there are other elements that positively impacted the net profit of the current quarter as follows:
- Revenue:
The total Company’s revenue for the current quarter increased by 7.95% for its two segments; Dairy and food processing and Agricultural production compared to the similar quarter last year. The Dairy and food processing sector has a noticeable growth where its revenue increased by 15.80% compared to the similar quarter last year due to the increase in the demand for the Company's products which had a positive effect on the net profit of the Company while the revenue of agricultural sector declined by 40.26% compared to the similar quarter last year.
-Other income and expenses:
The Other income and expenses had positive impact of SAR 1.64 million on the net profit of the current quarter compared to a loss of SAR 1.66 million in the similar quarter last year.
-General and Administrative expenses:
The general and administrative expenses for the current quarter decreased by 8.49% compared to the similar quarter last year due to decrease in the professional and consultancy fees during the current quarter.
- Zakat expenses:
Zakat estimated expenses for the current quarter reduced by 3.14% compared to the similar quarter last year.
All the above elements collectively impacted the gross profit and operating profit as follows:
-Gross profit:
Gross profit of the current quarter increased by 7.15% compared to the similar quarter last year due to increase in revenue by 7.95% and the stability in the costs of sales percentage over net revenue.
-Operating profit:
Operating profit of the current quarter increased by 36.43% compared to the similar quarter last year primarily due to the increase in sales volume, reduction in general and administrative expenses and the increase in the net other income.
- Revenue:
The Company’s revenue increased for the current quarter by 13.90% compared to the previous quarter due to the increase in the sales of the two segments; Dairy and food processing and agricultural. Where the Dairy and food processing sector increased by 11.95% as a result of increase in demand of the Company’s products and further to that the sale of agricultural sector increased by 43.71% as a result of the seasonal production and consumption.
-Other income and expenses:
The Other income and expenses had positive impact of SAR 1.64 million on the net profit of the current quarter compared to net loss on Other income and expenses amounted SAR 2.55 million in the previous quarter.
-Finance costs:
Finance costs and bank facilities slightly decreased in the current quarter compared to the previous quarter by 0.37% due to decrease in the borrowing rate.
On the other hand, the below elements had a negative impact on the net profit of the current quarter compared to previous quarter
- Losses on derivative financial instruments:
During the current quarter, the Company assessed the expected future interest rate movement, and accordingly, decided to terminate the Callable Inverse Floater (CIF) contracts and recognised the loss on the termination of the same, which amounted to SAR 19.16 million for the current quarter.
The net unrealized loss on Cross-Currency Swaps amounted to SAR 5.55 million is recognized during the current quarter.
Hence, the derivative financial instruments impacted the net profit negatively during the current quarter with a loss of SAR 24.71 million which is the primary reason for the decrease in the net profit for the current quarter.
-Selling and Marketing expenses:
Selling and marketing expenses increased in the current quarter compared to the previous quarter by 10.44% due to increase in sales volume and increase on marketing activities.
-General and Administrative expenses:
The general and administrative expenses was almost stable between the current quarter and the previous quarter where it shows a slight increase by 0.07%.
- Impairment Losses on Trade Receivables:
The expected credit loss assessment of trade receivables for the current quarter increased by 3.16% due to the increase in outstanding balance of trade receivable.
- Zakat expenses:
Zakat estimated expenses increased in the current quarter compared to the previous quarter by 7.03%.
All the above elements collectively impacted the gross profit and operating profit as follows:
-Gross Profit:
Gross profit increased in the current quarter compared to the previous quarter by 11.95%, due to the increase in sales by 13.90%.
-Operating profit:
Operating profit of the current quarter increased compared to the previous quarter by 39.15% due to the increase in sales volume, the increase in other income from other operating activities.
- Losses on derivative financial instruments:
During the current period, the Company assessed the expected future interest rate movement, and accordingly, decided to terminate the Callable Inverse Floater (CIF) contracts and recognised the loss on the termination of the same, which amounted to SAR 42.04 million for the current period.
The net unrealized loss on Cross-Currency Swaps amounted to SAR 3.44 million is recognized during the current period.
Hence, the derivative financial instruments impacted the net profit negatively during the current period with a loss of SAR 45.48 million which is the primary reason for the decrease in the net profit for the current period compared to the similar period last year.
-Selling and Marketing expenses:
Selling and marketing expenses increased in the current period compared to the similar period last year by 8.06% due to increase in sales volume and spending on marketing activities and promotional expenses.
- Impairment Losses on Trade Receivables:
The expected credit loss assessment of trade receivables for the current period increased by 179.53% due to the increase in outstanding balance of trade receivables.
-Finance costs:
Finance costs and bank facilities increased in the current period compared to the similar period last year by 17% despite the decrease in the outstanding loan at the end of the period due to increase in the market borrowing rate and bank charges during the current period.
Despite the changes in preceding elements that negatively impacted the net profit of the Company in the current period, there are other elements that positively impacted the net profit of the current period as follows:
- Revenue:
The Company’s revenue increased for the current period by 9.76% compared to the similar period last year due to increase in demand for the Company's products, which had a positive effect on the increase in sales volume of the Company where the sale of dairy and food processing sector grew by 15.51% while the sale of agricultural sector declined by 33.97%.
-General and Administrative expenses:
The general and administrative expenses for the current period decreased by 3.40% compared to the similar period last year due to the decrease in the professional and consultancy fees in the current period.
-Other income and expenses:
The loss resulting from other operating income and expenses for the current period decreased by 86.97% compared to the similar period last year due to increase in the other operating income.
- Zakat expenses:
Zakat estimated expenses decreased in the current period compared to the similar period last year by 6.32%.
All the above elements collectively impacted the gross profit and operating profit as follows:
-Gross Profit:
Gross profit increased in the current period compared to the similar period last year by 14.92%, due to the increase in revenue by 9.76% and a reduction in cost of sales percentage over net revenue due to better operating efficiency.
-Operating profit:
Operating profit of the current period increased compared to the similar period last year by 79.68% due to the increase in sales volume, the decrease in general and administrative expenses, and the decrease in the losses from other operating activities.
2-The comprehensive income for the current period reached SAR 3.39 million compared to SAR 14.49 million for the similar period last year with a decrease of 76.60%.
3-The comprehensive income for the current quarter reached SAR 7.07 million compared to a loss of SAR 3.67 million for the previous quarter.
4-The net profit for the current quarter reached SAR 7.07 million compared to SAR 19.51 million for the similar quarter last year with a decrease of 63.76%.
5-The net profit for the current period reached SAR 3.39 million compared to SAR 14.49 million for the similar period last year with a decrease of 76.60%.
6-The net profit for the current quarter reached SAR 7.07 million compared to a loss of SAR 3.67 million for the previous quarter.
7-Total revenue for the current quarter reached SAR 604.19 million compared to SAR 559.72 million for the similar quarter last year with an increase of 7.95%.
8-Total revenue for the current period reached SAR 1,134.66 million compared to SAR 1,033.80 million for the similar period last year with an increase of 9.76%.
9-Total revenue for the current quarter reached SAR 604.19 million compared to SAR 530.47 million for the previous quarter with an increase of 13.90%.
10-The gross profit for the current quarter reached SAR 227.57 million compared to SAR 212.38 million for the similar quarter last year with an increase of 7.15%.
11-The gross profit for the current period reached SAR 430.85 million compared to SAR 374.92 million for the same period last year with an increase of 14.92%.
12-The gross profit of the current quarter reached SAR 227.57 million compared to SAR 203.27 million for the previous quarter with an increase of 11.95%
13-The operating profit for the current quarter reached SAR 52.21 million compared to SAR 38.27 million for the similar quarter last year with an increase of 36.43%.
14-The operating profit for the current period reached SAR 89.73 million compared to SAR 49.94 million for the similar period last year with an increase of 79.68%.
15-The operating profit of the current quarter reached SAR 52.21 million compared to SAR 37.52 million for the previous quarter with an increase of 39.15%
16-The shareholders’ equity as of 30 June 2019 (no minority equity) was SAR 1,449.65 million compared to SAR. 1,446.25 million as of 31 December 2018 with an increase of 0.24%
17-The shareholders’ equity as of 30 June 2019 (no minority equity) was SAR 1,449.65 million compared to SAR 1,439.81 million as of 30 June 2018 with an increase of 0.68%
18-The earning per share for the current period is SAR 0.04 compared to SAR 0.17 for the same period last year.
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.