Development Works Food Co. announces its Interim Financial results for the Period Ending on 2024-09-30 ( Nine Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 25,911,067 | 23,859,186 | 8.599 | 26,895,837 | -3.661 |
| Gross Profit (Loss) | 2,655,303 | 1,459,111 | 81.98 | 3,121,858 | -14.944 |
| Operational Profit (Loss) | -445,933 | -1,018,632 | -56.222 | 1,076,695 | - |
| Net profit (Loss) | 351,474 | 508,849 | -30.927 | 1,035,567 | -66.059 |
| Total Comprehensive Income | 351,474 | 508,849 | -30.927 | 1,035,567 | -66.059 |
| All figures are in (Actual) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 76,662,975 | 70,738,998 | 8.374 |
| Gross Profit (Loss) | 8,486,193 | 3,759,599 | 125.72 |
| Operational Profit (Loss) | 1,412,620 | -3,988,690 | - |
| Net profit (Loss) | 2,672,278 | -1,837,045 | - |
| Total Comprehensive Income | 2,672,278 | -1,837,045 | - |
| Total Shareholders Equity (after Deducting Minority Equity) | 27,563,036 | 24,955,229 | 10.449 |
| Profit (Loss) per Share | 0.87 | -0.63 | |
| All figures are in (Actual) Saudi Arabia, Riyals | |||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | -2,778,542 | -9 | |
| All figures are in (Actual) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | The decrease in revenues during the current quarter compared to the revenues of the same quarter of the previous year is due to the decrease in sales. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | The increase in net profit during the current quarter compared to the net profit for the same quarter of the previous year is due to the decrease in operating costs and general and administrative expenses. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | The increase in revenues during the current quarter compared to the previous quarter's revenues is due to the increase in sales. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | The decrease in net profit during the current quarter compared to the net profit for the previous quarter is due to the decrease in other revenues. |
| The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is | The reason for the increase in revenues during the current period compared to the revenues of the same period of the previous year is due to the increase in sales. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | The increase in revenues during the current period compared to the revenues of the same period of the previous year is due to the increase in sales. |
| Statement of the type of external auditor's report | Conservation |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | conservative conclusion |
Except for the potential impact and adjustments to the interim condensed consolidated financial statements that might have come to our attention regarding the matter described in the qualification above, and based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with International Accounting Standard No. (34) “Interim Financial Reporting” as endorsed in the Kingdom of Saudi Arabia.
basis of the conservative conclusion
As shown in the consolidated interim condensed statement of financial position and in Note No. 7, the balance of right-of-use assets and lease liabilities as of September 30, 2024 amounted to SAR 24.7 million and SAR 21.7 million respectively (December 31, 2023: SAR 28.8 million and SAR 26.8 million respectively). During the period ended September 30, 2024 and the year ended December 31, 2023 (the comparative year and period), the Group’s management recorded additions and deletions of lease contracts under the right-of-use assets item, the lease liabilities item and branch rental income from The interior is included in other income. We have not reached a degree of satisfaction regarding the method of calculation and the correctness of the accounting treatment related to these transactions and their impact on the current period, year and comparative period and whether they should be accounted for in prior years in the consolidated financial statements, and we were not able to determine the impact of this on the depreciation of improvements to leased buildings included in property, plant and equipment (Note 6) and the reasonableness of the depreciation rates used by the Group and their proportionality with the terms of the lease contracts or not. In addition, the other income item, which appears in the consolidated interim statement of profit or loss and other comprehensive income for the three and nine months ended September 30, 2024, includes sub-lease revenues recognized by the Group in the amount of SAR 1.15 million and SAR 2.26 million, respectively. (For the three and nine months ended September 30, 2023: SAR 1.79 million and SAR 1.95 million). The Group has not assessed whether the sublease contracts are operating or finance leases in accordance with IFRS 16 (Leases). Accordingly, we were unable to determine whether any adjustments are necessary in the current period or in prior periods and years and the impact of those matters on the interim condensed consolidated financial statements.
Another thing
The Group’s consolidated financial statements for the year ended 31 December 2023 were audited by another auditor who expressed a qualified opinion on those consolidated financial statements due to the above-mentioned reservation on 26 Shawwal 1445H (corresponding to 5 May 2024G). Furthermore, the Group’s condensed consolidated interim financial statements for the period ended 30 September 2023 were reviewed by another auditor who expressed an unmodified opinion on those condensed consolidated interim financial statements on 25 Rabi’ Al-Thani 1445H (corresponding to 9 November 2023G).
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