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National Agriculture Development Co. NADEC announces the interim financial results for the period ending on 31-12-2014 (Twelve Months) - 18/01/2015

ELEMENTCURRENT QUARTERSIMILAR QUARTER FOR PREVIOUS YEAR% CHANGE CURRENTPREVIOUS QUARTER% CHANGE PREVIOUS
Net profit (loss)2014.835.1434.4-41.86
Gross profit (loss)181.7168.47.9202.1-10.09
Operational profit (loss)3024.721.4648.7-38.4
All figures are in (Millions) Saudi Arabia, Riyals
ELEMENTCURRENT PERIODSIMILAR PERIOD FOR PREVIOUS YEAR% CHANGE
Net profit (loss)107.2100.26.99
Gross profit (loss)775704.79.98
Operational profit (loss)147.8130.213.52
Earning or loss per share, Riyals1.531.43
All figures are in (Millions) Saudi Arabia, Riyals
ELEMENTEXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last yearIncrease in sales revenue with an increase in gross profit despite the increase in production cost during the quarter compared to the same period of the previous year, associated with an increase in selling and distribution cost as well as the general and administrative expenses but at a lower rate compared to the sales revenue growth as a result of better control on expenses and increase in operations efficiency that resulted in improving the operating profit relatively. On the other hand, there was a noted reduction in the positive effect of Zakat provision during the current quarter compared to the same period of the pervious year due to the Zakat provision adjustment, moreover there was a reduction in non-operating expenses and a slight reduction in the financing cost compared to the same period of the pervious year
Reasons of increase (decrease) for period compared with same period last yearIncrease 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 companys expansion
Reasons of increase (decrease) for quarter compared with previous quarterDecrease in the gross profit during the current quarter compared to the same quarter of last year which is mainly coming from the decrease in the sales revenue of the dairy and foods processing sector due to the seasonality of the sales and consumption of the dairy and foods products, despite the increase in the sales revenue of the Agricultural sector following the seasonality of the plantation and harvesting of the agri. crops there was also a decrease in selling and distribution cost and the General & Administrative cost as well as the financing cost moreover a positive effect from the Zakat provision adjustment has been realized during the current quarter as well as a reduction of the negative effect of the other non operating (expense ) / income for the current quarter compared to the previous quarter of the current year
Reclassifications in quarterly financial resultsCertain prior period figures have been re-classified to conform with the presentation in the current period
Other notes– The sales revenue of the current quarter grew by 13.4 % compared to the same period of previous year – 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 company is 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 reported earning per share has been recalculated for the similar period of last year reflecting the bonus shares that have been approved by the Extra ordinary general assembly on 19th March 2014.