| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 2,225.09 | 2,303.06 | -3.385 | ||
| Gross Profit (Loss) | 623.59 | 725.84 | -14.087 | ||
| Operational Profit (Loss) | -213.32 | 84.62 | - | ||
| Net Profit (Loss) after Zakat and Tax | -285.03 | 35.65 | - | ||
| Total Comprehensive Income | -282.47 | 37.66 | - | ||
| Total Share Holders Equity (after Deducting Minority Equity) | 1,195.81 | 1,478.28 | -19.108 | ||
| Profit (Loss) per Share | -2.8 | 0.35 | |||
| 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 reasons for the Company’s net loss of SAR 285.03 million in the current year compared to net profit of SAR 35.65 million for the previous year: |
-- Revenue:
The Company’s revenue for the current year decreased by 3.39% compared to previous year which is mainly on account of decrease in the sales of agricultural sector by 36.94% and dairy and food processing by 0.84%.
-- Cost of sales:
Cost of sales percentage on revenue was increased during the current year by 3.49% as compared to last year which is mainly on account of the increase in the animal feed cost and increase in provision for slow/nonmoving goods.
-- General and Administrative expenses:
The general and administrative expenses for the current year increased by 31.18% compared to the last year due to increase in in the professional and consultancy fees and information technology expense during the current year this increase is partially offset by decrease in employee benefit expenses.
-- Provisions for prepayments and other receivables:
During the year provision for SAR 64.95 million for subsidy receivables and prepayments.
-- other income/ (expenses) - net:
a) During the last 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 109.88 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 and no such income in current year.
b) Loss on sales of property, plant and equipments and biological assets by SR 28 million on account of culling of more cows during the current year compared to previous year.
-- Zakat expenses:
Zakat expenses increased in the current year as compared to last year by SAR 33.99 million is mainly account of provision made for earlier years based on the assessment order received form ZATCA.
Despite the changes in preceding elements that negatively impacted the profitability of the Company in the current year, there are other elements which have positively impacted the Company, as follows:
-- Selling and Marketing expenses:
Selling and marketing expenses decreased in the current year as compared to last year by 11.27% due to the less in spending on marketing activities and promotional expenses and decrease in transportation cost.
-- Finance cost:
Finance cost decreased in the current year as compared to last year by 26.58% due to the decrease in the interest rates as compared to last year.
-- Impairment losses on Property, Plant and Equipment
During the current year, the Company the management has performed physical verification of fixed assets with external consultants and as result of physical verification the management has written off PPE and Capital work in progress worth of SAR 83.67 million as compared to impairment losses of SAR 99.40 million recognized on Sudan project in last year.
2- The net loss for the current year reached to SAR 285.03 million as compared to the net profit of SAR 35.65 million last year with a decrease of 899.42%.
3- Total revenue for the current year reached SAR 2,225.09 million as compared to SAR 2,303.06 million last year with a decrease of 3.39%.
4- The gross profit for the current year reached SAR 623.59 million as compared to SAR 725.84 million last year with a decrease of 14.09%.
5- The operating loss for the current year reached SAR 213.32 million as compared to operating profit of SAR 84.62 million last year with a decrease of 352.09%.
6- The shareholders’ equity as of 31 December 2021 (no minority equity) was SAR 1,195.81 million as compared to SAR 1,478.28 million as of 31 December 2020 with a decrease of 19.11%
7- The loss per share for the current year reached to SAR 2.80 as compared to earnings per share of SAR 0.35 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.