14 August 2023
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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% |
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) | – |
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. |