Zamil Industrial Investment Company Announces Its Interim Financial Results for the Six-Month Period Ending 30 June 2023
14 August 2023

ELEMENT LIST CURRENT QUARTER SIMILAR QUARTER FOR PREVIOUS YEAR % CHANGE PREVIOUS QUARTER % CHANGE
Sales/Revenue 1,125,480 957,207 17.58% 1,039,198 8.30%
Gross Profit (Loss) 150,922 117,838 28.08% 150,695 0.15%
Operational Profit (Loss) (158,501) (2,432) 6,417.31% 24,504
Net Profit (Loss) after Zakat and Tax (184,094) (28,993) 534.96% (13,812) 1,232.86%
Total Comprehensive Income (184,230) (33,373) 452.03% (22,154) 731.59%
All figures are in thousands of Saudi Riyals
ELEMENT LIST CURRENT PERIOD SIMILAR PERIOD FOR PREVIOUS YEAR % CHANGE
Sales/Revenue 2,164,678 1,854,003 16.76%
Gross Profit (Loss) 301,617 222,044 35.84%
Operational Profit (Loss) (133,997) (29,885) 348.38%
Net Profit (Loss) after Zakat and Tax (197,906) (80,914) 144.59%
Total Comprehensive Income (206,384) (94,146) 119.22%
Total Shareholders' Equity (after Deducting Minority Equity) 564,499 872,578 (35.3%)
Profit (Loss) per Share (3.30) (1.35)
All figures are in thousands of Saudi Riyals
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) Extraordinary provisions of SAR 162.8 million for the damaged inventories due to the fire incident that took place on 3 March 2023;
2) Higher financial charges by SAR 21.95 million;
3) Higher provision for Zakat and Tax by SAR 8 million;
4) Higher provision for Expected Credit Loss by SAR 13 million.

However, the impact of the above is partly offset by the following:
1) Higher gross profit margins across all sectors;
2) Improved Operating Profit margins in both the Steel and Insulation sectors;
3) Higher Sales across all 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 increased due to:
1) Extraordinary provisions of SAR 162.8 million for the damaged inventories due to the fire incident that took place on 3 March 2023;
2) Lower Gross Profit and Operating profit margins in the Steel sector;
3) Reduction in Sales in the AC sector due to the fire incident, resulting in lower operating profit margins;
4) Higher Financial Charges by SAR 3.7 million;
5) Higher provisions for Expected Credit Loss by SAR 7.9 million;
6) Lower Profits from Discontinued Operations by SAR 4.3 million.
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) Extraordinary provisions of SAR 162.8 million for the damaged inventories due to the fire incident that took place on 3 March 2023;
2) Higher financial charges by SAR 49 million;
3) Higher provision for Zakat and Tax by SAR 8 million
4) Higher Provisions for Expected Credit Loss by SAR 10.4 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 Gross Profit margins across all sectors;
2) Improved Operating margins in all sectors;
3) Higher Sales across all sectors;
4) Higher Profits from Discontinued operations by SAR 42.2 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 16.8% (AC = 11.3%, Steel = 20.6%, and Insulation = 34.2%).

2) Consolidated Gross Profit margins improved across all sectors to 13.9%.

3) Operating Profit during the period, excluding extraordinary provisions, was SAR 28.8 million compared to a loss of SAR 29.9 million.

4) 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.