| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 2,303.06 | 2,225.26 | 3.496 | ||
| Gross Profit (Loss) | 725.84 | 844.6 | -14.061 | ||
| Operational Profit (Loss) | 84.62 | 115.92 | -27.001 | ||
| Net Profit (Loss) after Zakat and Tax | 35.65 | -7.3 | - | ||
| Total Comprehensive Income | 37.66 | -5.78 | - | ||
| Total Share Holders Equity (after Deducting Minority Equity) | 1,478.28 | 1,440.48 | 2.624 | ||
| Profit (Loss) per Share | 0.35 | -0.07 | |||
| All figures are in (Millions) 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 Company achieved net profit of SAR 35.65 million as compared to net loss of SAR 7.30 million in the previous year, mainly due to: |
Grant Income (other income - net):
During the current year, the Company received a letter from Ministry of Environment, Water and Agriculture granting the ownership for the revived area of land in Hail, Wadi Al Dawasir and Al Jouf. Net gain of SAR 111.81 million was recognized in the Statement of Profit and Loss under Other income (net) on account of differential land received as compared to the land already accounted in books.
Loss on derivative financial instruments:
During the previous year, the Company recognized loss amounting to SAR 42.94 million on Callable Inverse Floater (CIF) contracts and USD/SAR cross currency swap contract which were cancelled subsequently. There is no such item during the current year.
Revenue:
The Company’s revenue for the current year increased by 3.50% compared to previous year which is mainly on account of increase in the sales of dairy and food processing sector by 2.84% and increase in sale of agricultural sector by 12.97%.
General and Administrative expenses:
The general and administrative expenses for the current year decreased by 2.45% compared to the last year due to decrease in employee benefit expenses and this decrease is partially offset by the increase in the professional and consultancy fees and information technology expense during the current year.
Impairment losses on trade receivables:
The Impairment losses on trade receivables was decreased by SAR 2.57 million during the current year as compared to last year due to reduction in trade receivable balances.
Finance cost:
Finance cost decreased in the current year as compared to last year by 42.14% due to the decrease in the interest rates and reduction in the loans and borrowings as compared to last year.
Despite the changes in preceding elements that positively impacted the profitability of the Company in the current year, there are other elements which have negatively impacted the Company, as follows:
Impairment losses on Property, Plant and Equipment
During the current year, the Company identified the assets relating to Sudan project with net book value of SR 99.40 million which are considered impaired. Accordingly, impairment loss of SAR 99.40 million recognized in the Statement of Profit and Loss as compared to land development cost of SAR 79.98 million written off last year.
Cost of sales:
Cost of sales percentage on revenue was increased during the current year by 6.44% as compared to last year which is mainly on account of the increase in the material cost due to cancelation of government subsidy on animal feed and increase in provision for slow moving goods.
Selling and Marketing expenses:
Selling and marketing expenses increased in the current year as compared to last year by 1.39% due to the increase in spending on marketing activities and promotional expenses.
Zakat expenses:
Zakat estimated expenses increased in the current year as compared to last year by SAR 0.8 million.
2- The net profit for the current year amounted to SAR 35.65 million as compared to the net loss of SAR 7.30 million last year with an increase of 588.52%.
3- Total revenue for the current year reached SAR 2,303.06 million as compared to SAR 2,225.26 million last year with an increase of 3.50%.
4- The gross profit for the current year reached SAR 725.84 million as compared to SAR 844.60 million last year with a decrease of 14.06%.
5- The operating profit for the current year reached SAR 84.62 million as compared to SAR 115.92 million last year with a decrease of 27.00%.
6- The shareholders’ equity as of 31 December 2020 (no minority equity) was SAR 1,478.28 million as compared to SAR 1,440.48 million as of 31 December 2019 with an increase of 2.62%
7- The earning per share for the current year amounted to SAR 0.35 as compared to loss per share of SAR 0.07 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.