Zamil Industrial Investment Company Announces Annual Consolidated Financial Results for Year Ending 31 December 2018

Zamil Industrial Investment Company (Zamil Industrial) has announced its audited consolidated financial results for the year ending 31 December 2018.

Revenues for the year amounted to SAR 4,313.6 million (USD 1,150.3 million), compared with SAR 4,403.9 million (USD 1,174.4 million) for the same period in 2017, a decrease of 2.0 percent.

Gross profits were SAR 706.4 million (USD 188.4 million), compared with SAR 908.2 million (USD 242.2 million) for the same period in 2017, a decrease of 22.2 percent.

Operating loss was SAR 18.7 million (USD 4.9 million), compared with operating profits of SAR 226.5 million (USD 60.4 million) for the same period in 2017.

Net loss for the year, after deduction of Zakat and tax, was SAR 139.9 million (USD 37.3 million), compared with a net profit of SAR 105 million (USD 28 million) during the same period in 2017.

Total comprehensive loss for the year amounted to SAR 169 million (USD 45.1 million), compared with a total comprehensive income of SAR 106.5 million (USD 28.4 million) in 2017.

Loss per share for the twelve-month period ending 31 December 2018 was SAR 2.33, compared with earnings per share of SAR 1.75 during the same period in 2017.

Equity attributable to shareholders (after the elimination of Minority Interest) as of 31 December 2018 amounted to SAR 1,415.9 million (USD 377.6 million), compared with SAR 1,664.7 million (USD 443.9 million) as of 31 December 2017, a decrease of 14.9 percent.

The net loss for the twelve-month period was due to the following:

  1. The adoption of IFRS 9 resulted in an increase in provision for expected credit loss of financial assets by SAR 111 million.
  2. The reduction in gross profit margins across all sectors was due to lower domestic revenues, an increase in input costs, pressure on selling prices, and severe competition.
  3. An increase in financial charges.
  4. An increase in the share of the loss of associated companies.
  5. The loss on disposal of company’s share and impairment of dues from discontinued operations.

The external auditors have reviewed the financial statements and issued an unmodified report.

Comparative figures have been reclassified to conform to the presentation in the current period.

Additional Information:

  1. The Saudi local sales dropped by 4%, while exports and international sales, on the other hand, increased by 2.1%.
  2. The company continued its diligent efforts to cut costs and control expenses, which resulted in a savings of SAR 67 million in selling and administrative expenses, despite the increase in levies.