12 Aug

Fitaihi Group announces its Consolidated Interim Financial Results for the Period Ending on 30-06-2021 (Six Months)

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ELEMENT LISTCURRENT QUARTERSIMILAR QUARTER FOR PREVIOUS YEAR%CHANGEPREVIOUS QUARTER% CHANGE
Sales/Revenue34,183,4135,624,255507.785146,987,397-76.743
Gross Profit (Loss)26,342,562-2,904,701–139,371,156-81.098
Operational Profit (Loss)18,524,759-9,469,959–131,574,514-85.92
Net Profit (Loss) after Zakat and Tax17,005,811-16,867,659–130,106,386-86.929
Total Comprehensive Income33,881,039-16,464,196–137,811,397-75.414
All figures are in (Actual) Saudi Arabia, Riyals
ELEMENT LISTCURRENT PERIODSIMILAR PERIOD FOR PREVIOUS YEAR%CHANGE
Sales/Revenue181,170,81020,570,494780.731
Gross Profit (Loss)165,713,7184,677,4923,442.789
Operational Profit (Loss)150,099,273-9,921,651–
Net Profit (Loss) after Zakat and Tax147,112,197-19,282,172–
Total Comprehensive Income171,692,436-38,325,353–
Total Share Holders Equity (after Deducting Minority Equity)786,943,752569,211,99038.251
Profit (Loss) per Share2.67-0.35
All figures are in (Actual) Saudi Arabia, Riyals
ELEMENT LISTEXPLANATION
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is
The reason for achieving a net profit during Q2 2021, compared to a net loss during Q2 2020, is mainly due to the following:

1- An increase in sales by 48%, from SAR 9.4 million in Q2 2020 to SAR 13.9 million in Q2 2021.

2- An increase in received distributed dividends from equity instruments at fair value from SAR 0.004 million in Q2 2020 to SAR 15.1 million in Q2 2021.
Worth mentioning that the distributed dividends from equity instruments at fair value in 2020, which amounted to SAR 7.1 million, have been received in Q3 2020.

3- A profit of SAR 4.3 million in Q2 2021 resulted from the Company’s share in the business results of associates, compared to a loss amounting to SAR 3.8 million in Q2 2020.

4- A decrease in the inventory’s value by SAR 3.4 million was recorded in Q2 2020 to reduce the obsolete stock, while there was no need to do the same in Q2 2021.

5- A profit of SAR 0.8 million resulted from (Fair Value Investment Valuation Through Profit or Loss) in Q2 2021.

6- A decrease in Zakat expense by 37.5% in Q2 2021 to reach SAR 1.25 million, compared to SAR 2 million in Q2 2020.

7- Record losses from discontinued operations of SAR 5.6 million in Q2 2020, resulting from the Group’s exit decision, by selling its stake in the share capital of the subsidiary “Luxury Goods Trading Company Ltd.” (LGTC Ltd.).
Despite the increase of 22.7% in sales, distribution, administrative, and other expenses amounting to SAR 8.1 million in Q2 2021, compared to SAR 6.6 million in Q2 2020.
The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is
The reason for the decrease in the net profit of Q2 2021, compared to the net profit in Q1 2021 (the previous quarter) is mainly due to the following:

1- Achieve exceptional capital gains of SAR 125.7 million in Q1 2021, resulting from selling the total stake of the Group in the share capital of an associate.

2- A decrease in the Company’s share in the business results of associates by 42.7% in Q2 2021 that reached SAR 4.3 million, compared to SAR 7.5 million in Q1 2021.

Despite the following:
1- An increase in sales by 1.8% from SAR 13.7 million in Q1 2021 to SAR 13.95 million in Q2 2021.

2- An increase in received dividends from equity instruments at fair value from SAR 0.03 million in Q1 2021 to SAR 15.2 million in Q2 2021.
Worth mentioning that the distributed dividends from equity instruments at fair value in 2020, which amounted to SAR 7.1 million, have been received in Q3 2020.

3- A profit of SAR 0.8 million resulted from the (Fair Value Investment Valuation Through Profit or Loss) in Q2 2021, compared to SAR 0.65 million in Q1 2021.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is
The reason for achieving a net profit in the first half of 2021, compared to a net loss in the first half of 2020, is mainly due to the following:

1- Achieve exceptional capital gains of SAR 125.7 million in the first half of 2021, resulting from selling the total stake of the Group in the share capital of an associate.

2- An increase in received distributed dividends from equity instruments at fair value from SAR 0.005 million in the first half of 2020 to SAR 15.2 million in the first half of 2021.
Worth mentioning that the distributed dividends from equity instruments at fair value in 2020, which amounted to SAR 7.1 million, have been received in Q3 2020.

3- A profit of SAR 11.8 million in the first half of 2021 resulted from the Company’s share in the business results of associates, compared to a loss of SAR 1.6 million in the first half of 2020.

4- An increase in sales by 24.8%, from SAR 22.2 million in the first half of 2020 to SAR 27.7 million in the first half of 2021.

5- A profit of SAR 0.9 million resulted from (Fair Value Investment Valuation Through Profit or Loss) in the first half of 2021.

6- A decrease in Zakat expense of 21.9% in the first half of 2021 to reach SAR 2.5 million, compared to SAR 3.2 million in the first half of 2020.

7- A decrease in the inventory’s value by SAR 3.4 million was recorded in the first half of 2020 to reduce the obsolete stock, while there was no need to do the same in the first half of 2021.

8- Record losses from discontinued operations amounting to SAR 6.5 million in the first half of 2020, resulting from the Group’s exit decision, by selling its stake in the share capital of the subsidiary “Luxury Goods Trading Company Ltd.” (LGTC Ltd.).
Despite the increase of 9.5% in sales, distribution, administrative, and other expenses amounting to SAR 16.1 million in the first half of 2021, compared to SAR 14.7 million in the first half of 2020.
Statement of the type of external auditor’s reportUnmodified conclusion
Reclassification of Comparison ItemsThe figures for the presented financial periods of 2021 have been reclassified, and then the comparative figures for the presented periods of 2020, have been reclassified too. The items of (Company’s Share in Associate Companies’ Business Results), (Dividends Received from Equity Instruments at Fair Value), and (Fair Value Investment Valuation Through Profit or Loss) have been added to the revenue item. Hence, they were added to the (Total Profit) during the presented financial periods.

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