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The Agricultural development company (NADEC) announces its annual financial results for the period ended on 31 March 2018 (3 Months) - 08/05/2018

ELEMENTCURRENT QUARTERSIMILAR QUARTER FOR PREVIOUS YEAR% CHANGE CURRENTPREVIOUS QUARTER% CHANGE PREVIOUS
Net profit (loss)-5.024.33-7.6134.03
Gross profit (loss)162.54183.29-11.32165.5-1.79
Operational profit (loss)11.6624.46-52.334.45162.02
All figures are in (Millions) Saudi Arabia, Riyals
ELEMENTEXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last yearThe reason for the net loss in the current quarter compared to similar quarter last year is primarily driven by the decline in sales vs. the similar quarter last year by 1.63% for the total company; this is due to lower demand in the total market where the Food and Beverage sector’s sales declined by 4.09% compared to the similar quarter last year while Agricultural sector’s sales increased by 33.87% which represent only 10% of the total company sales during the current quarter. Despite the decrease in sales, the production cost increased by 4.32% due to the input price increase as well as the increase in other production cost, this resulted in a decrease in in the gross margin by 11.32%. On the other hand, there was a decrease in selling and distribution cost by 12.24% due to the impact of cost cutting programs launched by the company while administrative cost increased by 3.79%, decrease in other operating income and expenses due to lower revenue from the ancilary products and the provision for the receivables increased by 17.11%. All of these preceeding changes affected the operating income negatively by 52.32%. The financing charges decreased primarily due to the capitalization of the financing charges over qualified work in progress with a reduction in zakat provision by 5.52% compared to the similar quarter last year.
Reasons of increase (decrease) for quarter compared with previous quarterThere is a decrease in the net loss in the current quarter compared to the previous quarter which is due to the increase in total company sales, compared to the previous quarter, where the Food and Beverage sales increased by 5.00% affected by the seasonality and the consumption behaviour changes while the agricultural sales declined by 15.39% due to the sector activity affected by the wheather changes and the cultivation and harvest of crops seasonality. Due the the increase in sales of the total company, the production cost increased by 5.38% which affected the gross marging negatively by 1.79% compared to the previous quarter. On the other hand selling and distribution cost and the administrative cost decreased due to the cost cutting program applied by the company while the other operating income and expenses decreased due to a lower revenue from the ancilary products and a decrease in meat price. All of these preceeding changes positvely impacted the operating income of the current quarter compared o the previous quarter by 162.16% while the financing cost increased compared to the previous quarter due to the increase in the interest rate. Zakat provision decreased in the current quarter compared to the previous quarter. All of the preceeding changes reduced the net loss realized in the current quarter compared to the previous quarter.
Reclassifications in quarterly financial resultsItems, elements and notes of the comparatives figures in the Condensed Interim Financial Statements have been restated, regrouped or reclassified to comply with the accounting policiesapplied on the current period financials, which have been prepared in accordance with IFRS
Other notes1. SalesRevenue of the current quarter is SR. 474.08 million compared to SR. 481.93 million for the similar quarter last year with a decrease of 1.63% 2. Gross profit of the current quarter is SR. 162.53 million compared to SR. 183.29 million for the similar quarter last year with an decrease of 11.32% 3. Operating income of the current quarter is SR. 11.66 million compared to SR. 24.46 million for the similar quarter last year with a decrease of 52.32% 4. Net loss after Zakat and Tax of the current quarter is SR. (5.02) million compared to SR. 4.3 million net income for the similar quarter last year with a decrease of 215.88% 5. The loss per share for the current quarter is SR. (0.06) compared to earning per share of SR. 0.02 for the similar quarter last year 6. The share holders equity till the end of the current quarter is SR. 1,420.29 million compared to SR. 1,422.52 million for the similar quarter last year with a decrease of 0.16% 7.The reported earnings per share has calculated on the basis of 84.7 million shares