Search
Search

Full Announcement

The Agricultural development company (NADEC) announces its annual financial results for the period ended on 31 March 2017 (6 Months) - 2017/07/26

ELEMENT

CURRENT QUARTER

SIMILAR QUARTER FOR PREVIOUS YEAR

% CHANGE

PREVIOUS QUARTER

% CHANGE

NET PROFIT (LOSS)

25.89

35.57

-27.21%

4.33

497.24%

GROSS PROFIT (LOSS)

203.13

245.44

-17.24%

183.29

10.82%

OPERATIONAL PROFIT (LOSS)

44.39

53.28

-16.68%

24.46

81.46%



ELEMENT

CURRENT PERIOD

SIMILAR PERIOD FOR PREVIOUS YEAR

% CHANGE

NET PROFIT (LOSS)

30.22

59.32

-49.05%

GROSS PROFIT (LOSS)

386.42

447.54

-13.66%

OPERATIONAL PROFIT (LOSS)

68.85

91.74

-24.95%

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

The decrease in net income in the current quarter compared to the similar quarter last year is due to the decline in total compamy sales by 9.39% in which reflected the market performance in totality where dairy and food processing sector's sales declined by 6.42% compared to the similar quarter last year and agricultural sector's sales declined by 28.84% while the cost of production reduced by 4.49% due to the decline in sales this decline in sales negatively affect the gross marginby 17.24% in this quarter compared to the similar quarter last year, on the other hand the management of the company have manged to cut cost where selling and marketing expenses decreased by 6.76% and the administration cost decreased by 23.96% while the income from other operating income and expenses increased due to the sell out of Taseel Shares all the previous performance affect negatively the operating income by 16.68% compared to the similar quarter last year, on the other hand the financing charges and banks facilities increased due to the increase in investments adding to that zakat provision negatively affected the net income of the current quarter compared to the similar quarter last year.

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

The decrease in net income in the current period compared to the similar period last year is due to the decline in total compamy sales by 7.61% in which reflected the market performance in totality while the production cost decreased by 3.75% due to the decline in sales which affect the gross profit negatively by 13.66%, gross profit have been also afeected by the increase in energy prices on the other hand the selling and marketing expenses have been reduced by 3.31% affect by the cost cut program launced by the company management which also reduced the general and administrative cost by 20.19% compared to the similar quarter last year on the other hand the income from other operating income and expenses increased due to the sell out of Taseel shares. the all previous performance decreased the operating income by 24.95% compared to the similar quarter last year. on the other hand financing cost and zakat provision increased and negatively affect the net income, it is well noted to say that the total company sales declined by 7.61% driven by a decline in Dairy and food processing sector which is delined by 5.62% and Agri Sector which is declined by 24.49%. Agri sales is declined due to the stoppage of wheat plantation and the company is storing the harvested forage instead of selling them out to avoind any effect of stopping forage by end of 2018.

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

Due to total company sales growth by 20.7% supported by the sales growth of dairy and food processing by 15.06% and agricultural sector sales grew by 92.21% agri sales performance usually affected by the seasonality and crops seasonality harvesting the gross margin increased by 10.82% which positively affected the net income of the quarter compared to the previous quarter due to sales increase while Sales and marketing cost decreased and the income from other operating income and expenses increased which positively affect the net income. all the above performance increased the operating income in the current quarter compared to the previous quarter on the other hand financing cost and banks facilities and zakat provision decreased which positively affected the net income.

RECLASSIFICATIONS IN QUARTERLY FINANCIAL RESULTS The company applied the international financial reporting standards starting the first of January 2017 and the following periods, therefore the company restated the comapartive financial statements to reflect the changes in measurements, disclosure and accounting policy to be complied with IFRS requirements and the other standards and requirements issued by SOCPA. for more details refere to note No. 6 in the company's financials (application of IFRS for the first time adopters) attached to the financails for the period end on 31st March 2017.
OTHER NOTES 1. The comprehensive income for the current quarter reached SR.25.9 M compared to 35.6 M for the similar quarter last year with a decrease of 27.2%
2. The comprehensive income for the current period reached SR.30.2 M compared to 59.3 M for the similar quarter last year with a decrease of 49%
3. The comprehensive income for the current quarter reached SR.25.9 M compared to 4.3 M for the previous quarter with an increase of 497.2%
4. Total revenue for the current quarter reached SR. 578.6 m compared to SR. 638.6 M similar quarter last year with a decrease of 9.39%
5. Total revenue for the current period reached SR.1,060.5 m compared to SR. 1,147.9 M similar period last year with a decrease of 7.61%
6. The share holders equity till the end of the period (no minority equity) is SR. 1,425.4 M compared to SR. 1,418.2 M as end of December 2016 with an increase of 0.51%
7.The reported earnings per share has been calculated 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.