nadec menu

Investors

National Agricultural Development Co. NADEC announces the interim financial results for the period ending on 30-09-2016 (Nine Months) - 13/10/2016

ELEMENTCURRENT QUARTERSIMILAR QUARTER FOR PREVIOUS YEAR% CHANGE CURRENTPREVIOUS QUARTER% CHANGE PREVIOUS
Net profit (loss)30.1445.69-34.0337.06-18.67
Gross profit (loss)234.71241.42-2.78281.32-16.57
Operational profit (loss)51.7656.31-8.0853.78-3.76
All figures are in (Millions) Saudi Arabia, Riyals
ELEMENTCURRENT PERIODSIMILAR PERIOD FOR PREVIOUS YEAR% CHANGE
Net profit (loss)92.43106.95-13.58
Gross profit (loss)742.65694.087
Operational profit (loss)143.82128.0712.3
Earning or loss per share, Riyals1.091.26
All figures are in (Millions) Saudi Arabia, Riyals
ELEMENTEXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last yeardecrease in gross margin by 2.8% compared to the similar quarter last year due to the increase in cost of sales that have been affected by the increase in energy cost some other materials cost have been decreased on the other hand selling and distribution cost decreased by 1.3% as well as general and administrative cost decreased by 0.4% while the financing cost have been increased due to banks interest rate increase. other operating income and expenses negatively affected the net income while Zakat provision positively affected the net income additionally dairy and food manufacturing sector sales grew by 1.0% while Agri sectro sales grew by 4.6% which affected the total company growth by 1.0%
Reasons of increase (decrease) for period compared with same period last yearIncrease in gross profit by 7.0 % due to the decrease in cost of sales and increae in some of Agri products selling prices despite the increase in energy cost compared to the same period last year , on the other hand selling and distribution cost increased by 4.7% due to due to Dairy and foods processing horizental expansion, the administrative expenses increased by 12.4% which resulted in operating income increase by 12.3% , additionally the financing cost increased due to an increase in Banks intersst rate, the net income was impacted negatively by the decrease in other income and expenses due to lower sales in ancillary products and capital losses from assets disposal while Zakat provision has a positive effect on the net income of the current period, on the other hand sales of the dairy and foods manufacturing sectro grew by 5.1% while Agri sector declined by 27.2% due to the stoppage of wheat production and sales which affected the total company sales growth by 1.0%
Reasons of increase (decrease) for quarter compared with previous quarterDecrease in total company sales by 14.2% driven by the performance of the two sectors in which the Dairy and foods processing sector declined by 11.4% driven by the seasonality and consumptions patterns of the dairy and juice prodcuts while Agri sector sales grew by 33.6 % due to the changes in plantation and harvesting timing of different crops , this has casued gross profit decline by 16.6 % where the cost of sales percentage decrease is less than sales percenatge decrease that resulted in net income decrease on the other hand there is a decrease in selling and distribution cost as well as general and administrative cost compared to the previous quarter with an increase in financinfg cost due to increase in interest rate while other income and expenses and Zakat provision have negative effect on the net income
Reclassifications in quarterly financial resultsCertain prior period figures have been re-classified to conform with the presentation in the current period
Other notes1. Gross sales of the current quarter is SR. 661.5 million compared to SR. 625.7 million for the similar quarter last year with an increase of 5.7% 2. Gross SalesRevenue of the period is SR. 1.998 million compared to SR.1.932 million for the similar period last year with an increase of 3.4% 3. The shareholders equity (After taken of minority) till the end of the period is SR. 1.417 million compared to SR. 1.330 million for the similar period last year 6.5% 4. The effect of energy cost increase on the company net income till the end of Sep. 2016 is 49 million Saudi Riyas while the effect of the energy price increase on the current quarter net income is 24 million Saudi Riyals 5.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