| Increase (Decrease) in Net Profit for Current Year Compared to Last Year is Attributed to | The reason for achieving a net loss during the financial year 2019, compared to net profit during the previous year, is mainly due to the following:1- Recording impairment losses in the value of the investment in an associate (Al-Jouf Agricultural Development Company) during the financial year 2019, an amount of 24.8 million SAR.2- Decrease in sales during the financial year 2019, compared to the previous year by 14.8%, which led to a decrease in the gross profit by 7.8 million SAR.3- The Company’s share of the business results of associated companies’ decreased in the financial year 2019, compared to the previous year, by 27.4%, with an amount of 7.4 million SAR.4- Achieving other net expense of 0.7 million SAR, in the financial year 2019, compared to other revenues of 0.7 million SAR, in the previous year.Among the positive aspects, during the financial year 2019, compared to the previous year, there are the following:1- The decrease in total sales and administrative expenses, during the financial year 2019, compared to the previous year, by 24.5%, with an amount of 16.9 million SAR.2- No slow-moving stock provision was created, during the financial year 2019, compared to a slow-moving stock provision created during the previous year, with an amount of 5 million SAR.3- Increase in net profits from investments during the financial year 2019, compared to the previous year, by 37.4%, with an amount of 2.1 million SAR.4- Zakat expense decreased, during the financial year 2019, compared to the previous year, by 9.2%, with an amount of 0.49 million SAR.The figures for the financial years 2019 and 2018 have been reclassified, where the Company’s share item, of the business results of its associate company and the net profit of investments, has been added. Accordingly, it was added to the gross profit during the presented financial periods. |
