Al Hassan Ghazi Ibrahim Shaker Co. announces the interim financial results for the period ending on 31-03-2017 (Three Months)

ELEMENTCURRENT QUARTERSIMILAR QUARTER FOR PREVIOUS YEAR% CHANGE CURRENTPREVIOUS QUARTER% CHANGE PREVIOUS
Net profit (loss)-14,89027,984-29,55649.62
Gross profit (loss)67,08598,659-3269,496-3.47
Operational profit (loss)-22,67423,094-17,755-27.7
Earning or loss per share, Riyals-0.240.44
All figures are in (Thousands) Saudi Arabia, Riyals
ELEMENTEXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last yearThe loss at both net and operational profits levels, and the decline of the gross profit level compared to the corresponding quarter is attributed to the drop in sales by 26%, decrease in gross profit margin as a result of the relative increase in cost of sale percentage and the increase in expenses by SR 13.6 Million as a result of additional provisions amounting to SR 5.1 Million for trade receivables and the increase in the selling and distribution expenses to stimulate sales and to maintain the Companys market share. Part of the expenses are associated with the advertising campaign to launch LG new generation of air conditioners (dual inverter) in the Kingdom, which is highly efficient in energy saving. Whereas, there is an improvement in share of results of associates by SR 2.3 Million for the current quarter compared with the same quarter in 2016.
Reasons of increase (decrease) for quarter compared with previous quarterThe decrease in the current quarterly loss, is mainly due to an increase in the share of results of associates by SR 20.8 Million. The decrease in gross profits and increase in operating loses is due to drop in sales by 6.5% and increase in operating expenses.
Reclassifications in quarterly financial resultsItems, elements and notes of the comparative Condensed Consolidated Interim Financial Statements have been redisplayed, regrouped and reclassified to meet with the applied accounting policies for the current period which have been prepared according to the International Financial Reporting Standards (IFRS) that are endorsed in the Kingdom of Saudi Arabia. For more information, please see the note 18 (First Time adoption of IFRS) in the Interim Consolidated Financial Statements for the period ended in 31 March 2017.
Other notesTotal revenue for the current quarter amounted to SR 292.3 Million as compared to SR 395.1 Million for the same quarter of the previous year, with a decrease of 26%. Total shareholders equity (excluding minority interests) as of March 31, 2017 amounted to SR 1,029 Million, compared to SR 1,070 Million as of March 31, 2016, with a decrease of 3.8 %. Total comprehensive loss attributable to owners of the Company for the current quarter amounted to SR 14.89 Million as compared to total comprehensive income attributable to owners of the company of SR 27.8 M which is a drop of 153%. The total comprehensive loss attributable to owners of the company for the Q4 amounted to SR 29.5 Million in comparison to total comprehensive loss attributable to owners of the Company for Q1 2017 SR 14.8 Million which is drop in losses by 50% from Q4 2016 to Q1 2017. For comparison purposes, all comparatives figures of 2016 (unaudited) have been adjusted to comply with the accounting policies adopted for the current period which have been prepared according to the International Financial Reporting Standards (IFRS). It is worth mentioning here, that the company has continued to maintain its market share .In addition, it continued to control its expenses through efficient spending and improving its working capital. The increase in selling and distribution expenses during the current quarter was due to launch of LG new generation of air conditioners (dual inverter) and investment in selling and distribution expenses to stimulate sales due to the slow market demand and strong competition and to enhance the presence of all brands portfolio that the Company deals with.

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