Al Hassan Ghazi Ibrahim Shaker announces the interim financial results for the period ending on 30-09-2013 (Nine Months)

ELEMENTCURRENT QUARTERSIMILAR QUARTER FOR PREVIOUS YEAR% CHANGE CURRENTPREVIOUS QUARTER% CHANGE PREVIOUS
Net profit (loss)31,34458,410-46.3474,931-58.17
Gross profit (loss)113,383138,147-17.93189,770-40.25
Operational profit (loss)37,98372,294-47.46102,746-63.03
All figures are in (Thousands) Saudi Arabia, Riyals
ELEMENTCURRENT PERIODSIMILAR PERIOD FOR PREVIOUS YEAR% CHANGE
Net profit (loss)156,066181,398-13.96
Gross profit (loss)450,791437,0873.14
Operational profit (loss)214,899227,672-5.61
Earning or loss per share, Riyals4.465.18
All figures are in (Thousands) Saudi Arabia, Riyals
ELEMENTEXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last yearThe decline in Net Profit for the quarterly period is due to the decrease in sales by 13.6% compared to same period of last year, in addition to the decrease in the Gross Margin by 17.9% due to the increased cost of sales as well as the increased cost of marketing promotions due to the intense air-condition market competition to expedite the sales of inventory to introduce the new stock that is complying with the new standards issued by SASO and the Saudi Energy Efficiency Center that will become effective 1/1/2014. In addition to, increased Selling & Distribution (S&D) and the General & Administrative Expenses for the quarterly period compared to same quarter of previous year particularly Expenses relating to Marketing promotions campaigns.
Reasons of increase (decrease) for period compared with same period last yearThe decline in Net Profit for the current period (nine months) is mainly due to the decrease in the Gross Margin during Q3 2013 due to same reasons stated above. In addition to the increase in operating expenses during the period compared with same period of last year.
Reasons of increase (decrease) for quarter compared with previous quarterThe decline in Net Profit for the current period (nine months) is mainly due to the decrease in the Gross Margin during Q3-2013 due to same reasons stated above. In addition to the decrease in demand during the Holy Month of Ramadan followed by the EID holiday.
Other notesIt is worth emphasizing here that LG Shaker factory in Riyadh one of Shaker local Subsidiaries the manufacturer of LG Air-Conditioning in KSA has already started the production of the Air Conditioning units complying with the new standards of EER aiming to optimize energy efficiency.

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