Zamil Industrial Investment Company Announces Its Annual Financial Results for the Year Ending 31 December 2023

ELEMENT LIST	CURRENT YEAR	PREVIOUS YEAR	% CHANGE
Sales/Revenue	4,684,427	3,926,186	19.31%
Gross Profit (Loss)	572,235	551,428	3.77%
Operational Profit (Loss)	(329,543)	(41,449)	695.6%
Net Profit (Loss) after Zakat and Tax	(297,843)	(178,069)	67.26.7%
Total Comprehensive Income	(319,080)	(195,841)	62.93%
Total Shareholders' Equity (after deducting minority equity)	451,803	770,883	-41.39%
Profit (Loss) per Share	(4.96)	(2.97)	–

ELEMENT LIST	EXPLANATION
The reason for the increase (decrease) in sales/revenue in the current year compared to the previous year	Consolidated Sales for the period increased by 19.3% due to sales growth in all Sectors. The Steel sector grew 27.6% and the Insulation sector grew 47.6%. The AC sector grew 3% despite production losses due to a fire at one of its plants.
The reason for the increase (decrease) in net profit in the current year compared to the previous year is	The net loss for the year increased due to: 1) In accordance with International Financial Reporting Standards (IFRS), a non-cash provision for expected credit losses on contract and trade receivables of SAR 157.1 million was recorded for the year as compared to SAR 72.3 million in the previous year, an increase of SAR 84.8 million. 2) Financial charges for the year amounted to SAR 187.7 million compared to SAR 109.6 million in the previous year, an increase of SAR 78.1 million. 3) Tax and Zakat for the year is SAR 45.9 million as compared to SAR 28.7 million in the previous year, an increase of SAR 17.2 million. 4) The financial impact of SAR 171 million incurred as a direct cost due to a fire in one of the subsidiaries is accounted for as an operating loss and the insurance reimbursement for the same is accounted for as an insurance recovery. However, the impact of the above losses is partially offset by the following: 1) Higher sales resulted in an improvement in gross profit in the Steel and Insulation Sectors. 2) Higher profits from associated companies by SAR 21.3 million 3) Higher other income by SAR 30.9 million 4) Higher gains from discontinued operations by SAR 43.1 million as a result of the sale of assets held for sale.
Statement of the type of external auditor's report	Unmodified Conclusion
Reclassification of Comparison Items	Comparative figures have been reclassified to conform with the presentation in the current year.