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Full Announcement

National Agricultural Development Co. NADEC announces the interim financial results for the period ending on 31-12-2016 (Twelve Months) - 2016/12/31

ELEMENT

CURRENT QUARTER

SIMILAR QUARTER FOR PREVIOUS YEAR

% CHANGE CURRENT

PREVIOUS QUARTER

% CHANGE PREVIOUS

NET PROFIT (LOSS)

7.76

34.37

-77.43

30.14

-74.26

GROSS PROFIT (LOSS)

213.03

248.35

-14.22

236.59

-9.96

OPERATIONAL PROFIT (LOSS)

31.88

43.29

-26.35

53.63

-40.56

ELEMENT

CURRENT PERIOD

SIMILAR PERIOD FOR PREVIOUS YEAR

% CHANGE

NET PROFIT (LOSS)

100.19

141.32

-29.11

GROSS PROFIT (LOSS)

958.97

942.56

1.74

OPERATIONAL PROFIT (LOSS)

179.00

171.38

4.45

EARNING OR LOSS PER SHARE, RIYALS

1.18

1.67

-

All figures are in (Millions) Saudi Arabia, Riyals


ELEMENT

EXPLAINATION

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

Decrease in Sales compared to the same quarter last year by 8.26% resulted in a decrease in gross margin by 14.22%. The increase in fuel cost and energy cost negatively affected the gross income despite the price decrease in the raw materials, additionally the company increased its operational effeciency to absorb part of the increase in energy cost on the other hand selling and distribution cost decreased and general and administrative cost decreased while the financing charges increased due to the increase in cost of money. The other income and expenses negativelt affected the net income while Zakat provision positively affected the net income during the current quarter compared to the same quarter last year

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

Decrease in sales compared to last year by 1.38% while the gross income increased by 1.74% due to lower raw materials cost and increase in operational effeciency despite the increase in fuel cost and energy cost. On the other hand the selling and distribution cost increased due to increase in sales and marketing activities as well as the increase in general and administrative cost compared to last year. on the other hand financing cost increased due the increase in cost of money compared to last year. The other income and expenses negatively affect the net income of the current year due to lower sales of ancilary products and higher capital loses resulting from assets and cows sales while Zakat provision affected the net income of the year positively. it is worth noting that the total sales of the company decreased by 1.38% while dairy and boverage sector sales increased by 2.32 % compared to last year , the Agricultural sector sales decreased by 25.82%

REASONS OF INCREASE (DECREASE) FOR QUARTER COMPARED WITH PREVIOUS QUARTER

Decrease in sales by 13.11% due to the changes in seasonality and consumptions patterns of the dairy and juice prodcuts associated with a decrease in production cost due to lower sales volume which resulted in a decrease in gross margin by 9.96% on the other hand there is a decrease in selling and distribution cost while general and administrative cost increased compared to the previous quarter with a decrease in financinfg cost compared to the previous quarter while other income and expenses and Zakat provision had negative effect on the net income

RECLASSIFICATIONS IN QUARTERLY FINANCIAL RESULTS

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

OTHER NOTES

1. sales of the current quarter is SR. 505.99 million compared to SR. 551.55 million for the similar quarter last year with a decrease of 8.26%
2. Gross profit of the current quarter is SR. 213.03 million compared to SR. 248.35 million for the similar quarter last year with a decrease of 14.22%
3. Operating income of the current quarter is SR. 31.88 million compared to SR. 43.29 million for the similar quarter last year with a decrease of 26.35%
4. Net income after Zakat and Tax of the current quarter is SR. 7.76 million compared to SR. 34.37 million for the similar quarter last year with a decrease of 77.43%
5. Sales\Revenue of the period is SR. 2,296.49 million compared to SR. 2,328.59 million for the similar period last year with a decrease of 1.38%
6. gross profit of the period is SR. 958.97 million compared to SR. 942.56 million for the similar period last year with an increase of 1.74%
7. Operating income of the period is SR. 179.00 million compared to SR. 171.38 million for the similar period last year with an increase of 4.45%
8. Net income of the period is SR. 100.19 million compared to SR. 141.32 million for the similar period last year with a decrease of 29.11%
9. The earning per share for the current period is SR. 1.18 compared to SR. 1.67 for the similar period last year
10. The share holders equity till the end of the period is SR. 1,425 million compared to SR. 1,365 million for the similar period last year with an increase of 4.4%
11. The effect of energy cost increase on the company net income till the end of Dec 2016 is SR. 63.3 million while the effect of the energy price increase on the current quarter net income is SR. 14.4 million.
12. The reported current ratio as of the year end equates to 0.75: 1 with a plan to improve it during 2017 by resttructuring part of the short tem loans to Med term loan
13.The reported earnings per share has been recalculated for the similar period of last year on the basis of 84.7 million shares reflecting the bonus shares that has been approved by Extra ordinary general assembly on 29th Jumada Al-Thani 1437 corresponding to 7th April 2016