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National Agricultural Development Co. NADEC announces the interim financial results for the period ending on 31-03-2016 (Three Months) - 12/04/2016

ELEMENTCURRENT QUARTERSIMILAR QUARTER FOR PREVIOUS YEAR% CHANGE CURRENTPREVIOUS QUARTER% CHANGE PREVIOUS
Net profit (loss)25.2426.16-3.5234.37-26.56
Gross profit (loss)227.96201.9112.9244.78-6.87
Operational profit (loss)39.6336.827.6347.09-15.84
Earning or loss per share, Riyals0.330.34
All figures are in (Millions) Saudi Arabia, Riyals
ELEMENTEXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last yearThe net income of the company declined due to the increase in selling and distribution cost and general and administrative expenses with slight sales growth by 0.13% for the total company whereas dairy and foods processing sector sales grew by 4.2% while agricultural sector sales declined by 33.9% , and on the other hand the cost of sales decreased due to better sales mix and lower cost of some of the raw materials which contributed to absorb the part of the effect of the increase in energy cost, additionally the net income was negatively affected by the increase in Zakat provisions and financing charges with a reduction in other income and expenses.
Reasons of increase (decrease) for quarter compared with previous quarterDecline in total company sales by 3.3% where Agricultural sector sales declined by 41.5% while dairy and foods processing sector sales grew by 1.6% , and it is worth noting that the company operations and revenue get affected by planting and harvesting seasons and consumption changes which affect the financial results during the year, the the gross margin of the current quarter declined compared to the previous quarter which negatively affected the net income while the reduction in selling and distribution cost positively affected the net income in contrast to the general and administrative expenses that increased compared to the previous quarter , Zakat provision positively affected the net income while other income and expenses negatively affeted the net income compared to the previous quarter
Reclassifications in quarterly financial resultsCertain prior period figures have been re-classified to conform with the presentation in the current period
Other notesThe reported earnings per share has been recalculated for the similar period of last year on the basis of 77 million shares reflecting the bonus shares that has been approved by Extra ordinary general assembly on 26th Jumada AlAwal 1436 corresponding to 17th March 2015