Zamil Industrial Investment Company Announces Its Interim Financial Results for the Nine-Month Period Ending 30 September 2023

ELEMENT LIST	EXPLANATION
The reason for the increase (decrease) in net profit during the current quarter compared to the same quarter of last year is	Net loss increased due to: 1) Higher Financial Charges by SAR 20.1 million; 2) Higher Provision for Zakat and Tax by SAR 6.2 million; 3) Higher Provision for Expected Credit Loss by SAR 18.8 million. However, the impact of the above is partly offset by the following: 1) Higher Sales in the Steel and Insulation sectors; 2) Higher Gross Profit and Operating Profit in the Steel and Insulation sectors.
The reason for the increase (decrease) in net profit during the current quarter compared to the previous quarter of the current year is	Net loss reduced due to: 1) Higher Sales across all sectors; 2) Higher Gross Profit across all sectors; 3) Better Operating margins in the AC sector; 4) Higher Other Income by SAR 9.8 million; 5) Higher Share in results of associates and a joint venture by SAR 8.1 million; 6) There is no extraordinary provision compared to SAR 162.8 million inventory provision against loss due to fire made in the previous period of the current year.
The reason for the increase (decrease) in net profit during the current period compared to the same period of the last year is	Net loss increased due to: 1) Inventory Provision of SAR 162.8 million damaged due to fire; 2) Higher Financial Charges by SAR 69.2 million; 3) Higher Provision for Zakat and Tax by SAR 14.3 million; 4) Higher Provision for Expected Credit Loss by SAR 29.3 million; 5) Impairment loss of non-current assets by SAR 8.2 million. However, the impact of the above is partly offset by the following: 1) Higher Sales across all sectors; 2) Better Gross Profit margin in the Steel and Insulation sectors; 3) Better Operating margins in the Steel and Insulation sectors; 4) Higher Profit from Discontinued Operations by SAR 43 million; 5) Higher Share in results of associates and a joint venture by SAR 16.8 million.
Statement of the type of external auditor's report	Unmodified Conclusion
Modification, Qualification or Emphasis of a Matter as Stated in the External Auditor's Opinion	None
Reclassification of Comparison Items	Comparative figures have been reclassified to conform with the presentation in the current period.
Additional information	It is worth mentioning the following important notes: 1. Consolidated Sales during the period increased across all sectors by 18.3% (AC = 5.8%, Steel = 24.5%, and Insulation = 48.5%). 2. Operating Profit during the period, excluding extraordinary provisions, was SAR 29.5 million compared to a profit of SAR 3.7 million. 3. During the period, the company made a provision amounting to SR 162.8 million for inventories that were damaged during the fire incident that occurred in one of the plants of Zamil Air Conditioners and Home Appliances Company (a subsidiary) back on 3 March 2023. The company has insurance coverage to mitigate the risk of such losses. The company has filed claims and is confident that the settlement from the insurance company will be adequate to cover the losses due to the fire. 4. During the period, company’s Extraordinary General Assembly, held on 28 September 2023, approved the recommendation of the Board of Directors to use a portion of the statutory reserve of SAR 180,000,000 to absorb the company’s total accumulated losses of SAR 169,253,000, representing 28.2% of the capital as on 30 June 2023. As a result, the accumulated losses as on 30 September 2023 amounted to SR 33.1 million, which represents 5.53% of the capital.

ELEMENT LIST	CURRENT QUARTER	SIMILAR QUARTER FOR PREVIOUS YEAR	% CHANGE	PREVIOUS QUARTER	% CHANGE
Sales/Revenue	1,225,884	1,011,356	21.21%	1,125,480	8.92%
Gross Profit (Loss)	163,431	155,701	4.96%	150,922	8.29%
Operational Profit (Loss)	663	33,552	98.02%	(158,501)	–
Net Profit (Loss) after Zakat and Tax	(33,169)	2,435	–	(184,094)	(81.98%)
Total Comprehensive Income	(34,119)	(1,841)	1,753.29%	(184,230)	(81.48%)

ELEMENT LIST	CURRENT PERIOD	SIMILAR PERIOD FOR PREVIOUS YEAR	% CHANGE
Sales/Revenue	3,390,562	2,865,359	18.33%
Gross Profit (Loss)	465,048	377,745	23.11%
Operational Profit (Loss)	(141,586)	3,667	–
Net Profit (Loss) after Zakat and Tax	(231,075)	(78,479)	194.44%
Total Comprehensive Income	(240,503)	(95,987)	150.56%
Total Shareholders' Equity (after Deducting Minority Equity)	530,380	870,737	(39.09%)
Profit (Loss) per Share	(3.85)	(1.35)	–