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Full Announcement

The Agricultural development company (NADEC) announces its annual financial results for the period ended on 31 Dec 2017 - 2018/03/21

 

Element Current period similar period for previous year % Change
Net profit (loss) 39.94 94.23 -57.61%
Gross profit (loss) 731.08 837.86 -12.74%
Operational profit (loss) 97.62 167.45 -41.70%
Earning or loss per share, Riyals 0.47 1.14

Reasons of increase (decrease) for the period compared with same period last year The decrease in net income for the period compared to the similar period last year is due to the decline in total compamy sales by 6.62% in which reflected the market performance in totality while the cost of production reduced by 2.78% due to the decline in sales this decline in sales negatively affect the gross margin by 12.74% , on the other hand the selling and marketing expenses decreased by 0.12% while the admionistrative cost decreased by 13.17% as a result of cost cutting program. The increase in other operating income and expenses positively affect the net income due to the one-off available for sales sell out while the reduction in selling price of culled cows negatively impact the other operating income and expenses as a result of this the operating income reduced by 41.7%, on the other hand the financing charges and banks facilities decreased due to capitalizing the borrowing cost over the qualified assets and zakat provision decreased in which positively affect the net income. it is well noted to say that despite the total sales of the company declined by 6.62% dairy and food processing sector's sales declined by 5.76% compared to the similar period last year while agricultural sector's sales declined by 14% compared to the similar period last year due to the changes in crops mix.
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 Dec. 2017.
Other notes 1. Total revenue for the current period reached SR.2,032.48 M compared to SR. 2,176.49 M similar period last year with a decrease of 6.62%.
2. The comprehensive income for the current period reached SR.33.92 M compared to 104.03 M for the similar period last year with a decrease of 67%.
3. The operating income for the current period reached SR. 97.6 M compared to SR. 167.4 M for the similar period last year with a decrease of 41.7%.
4. The net income after Zakat and Tax for the current period SR. 39.94 M compared to SR. 94.23 M for the similar period last year with a decrease of 57.61%.
5. The share holders equity till the end of the period (no minority equity as of 31 Dec-17) is SR.1,425.3 M compared to SR. 1,418.2 M as end of December 2016 with an increase of 0.5%.
6.The reported earnings per share for the current period reached SR. 0.47 compared to SR. 1.14 for the similar period last year.
7. The reported earning per shar has been calculated by dividing the net income attributed to the shareholders over the weighted average number of shares 82.659.500 during the year.