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Full Announcement

National Agriculture Development Co. Nadec announces its annual financial results for the period ending on 31-12-2014 (Twelve months) - 2015/02/16

Increase in sales revenue and reduction of the Zakat provision despite the increase in some operating expenses and financing cost attributed to the company’s expansion as well as the decrease in other revenue

ELEMENT

YEAR 2014

PREVIOUS YEAR

CHANGE %

NET PROFIT (LOSS)

107.2

100.2

6.99%

EARNING PER SHARE

1.53

1.43

 

GROSS PROFIT(LOSS)

775

704.7

9.98%

OPERATIONAL PROFIT

147.8

130.2

13.52%



All figures are in (Millions) Saudi Riyals


ELEMENT

EXPLAINATION

REASONS OF INCREASE (DECREASE) FOR PERIOD COMPARED WITH SAME PERIOD LAST YEAR

Increase in sales revenue of the total company coming mainly from the dairy and foods processing sector associated with an increase in gross profit at a higher rate as a result of better production efficiency despite the decrease in sales and profitability of the Agricultural sector. The company was able to generate a better operating income relatively despite the increase in selling & distributions cost and the general & administrative expenses associated with the sales growth, Moreover the Zakat provision has decreased during the period compared to the same period last year, on the other hand, there was a decrease in the positive effect of other non-operating (expense) / income compared to the previous year additionally the financing cost increased compared to the previous year due to the company’s expansion.

RECLASSIFICATIONS IN QUARTERLY FINANCIAL RESULTS

Certain prior period figures have been re-classified to conform with the presentation in the current period

OTHER NOTES

* The sales revenue for the 12 months period grew by 7.5 % driven mainly from the growth in sales revenue of the dairy and foods processing sector which grew by 12.5 % compared to the same period of last year while the sales of Agricultural has notably dropped during the period due to the decrease of production of some Agri. Crops.

* The companys’ sales and performance get affected by the seasonality of the consumption of the dairy and foods products as well as the planation and harvesting of the Agri. crops which affect the company is financials throughout the year.

* The earning per share has been recalculated for the comparable period on the basis of 70 million shares to reflect the bonus shares that have been approved by the extraordinary shareholders general assembly that convened on 18-5-1435 H corresponding to 19 -3- 2014