| Reasons of increase (decrease) for quarter compared with same quarter last year |
The decline in net profits in the current quarter of the Year 2015, compared with the net profits of the same quarter of the Year 2014 is mainly due to the decrease in sales by 3.6%, as the Group achieved sales amounting to 72.0 million SAR in the second quarter of the Year 2015, compared with sales amounting to 74.7 million SAR in the same quarter of last year. This decrease in sales led the gross profit of sales declined, with an amount of 0.7 million SAR, to 35.8 million SAR in the second quarter of the Year 2015, compared with an amount of 36.5 million SAR in the same quarter of last year. Moreover, the investment earnings, decreased by 47.5%, totalling 6.3 million SAR in the second quarter of the Year 2015, compared with an amount of 12 million SAR in the same quarter of last year, which were achived mainly by the selling of some stocks of Oriental Weaver in Egypyt owned by one of the Group’s subsidiaries during the second quarter of the Year 2014; as announced on Tadawul website on 15-04-2014. The positive effect resulted from registering the Group’s share in the profits of an associated company (the International Medical center or IMC) reduced the negative effect of the above mentioned. The Group registered it’s share in the profits of the IMC which amounted to 7.9 million SAR in the second quarter of the Year 2015, with an increase of 23.4%, compared with profits amounted to 6.5 million SAR in the same quarter of last year. Worth mentioning that the Group started to apply the equity method of accounting for its investment in the IMC starting from the first quarter of the Year 2015; due to a significant influence resulting from the appointment of two representatives of Fitaihi Holding Group in the board of the IMC. The investment balances, retained earnings and financial results have been retroactively restated in the current quarter and same quarter of last year. Zakat has declined, with an amount of 90,000 SAR, by 4.7% in the second quarter of the Year 2015. In addition to the decrease of total expenses and other expenses by 2.17%, totaling 620,000 SAR during the second quarter of the Year 2015, compared with the same quarter of last year, which helped in reducing the negative influence of the decrease in net profits. |
| Reasons of increase (decrease) for period compared with same period last year |
The decline in net profits in first half of the Year 2015 compared to the same period of last year is mainly due to the decrease in sales by 5.7%, as the Group achieved sales amounting to 140.9 million SAR in the first half of the Year 2015, compared with sales amounting to 149.5 million SAR in the same period of last year. This decrease in sales led the gross profit of sales declined, with an amount of 3.8 million SAR, to 69.5 million SAR in the first half of the Year 2015, compared with an amount of 73.2 million SAR in the same period of last year. Moreover, the investment earnings, decreased by 50.7%, totalling 10.4 million SAR in the first half of the Year 2015, compared with an amount of 21.1 million SAR in the same period of last year, which were achived mainly by the selling of some stocks of Oriental Weaver in Egypyt owned by one of the Group’s subsidiaries during the first half of the Year 2014; as announced on Tadawul website on 15-04-2014. The positive effect resulted from registering the Group’s share in the profits of an associated company (the International Medical center or IMC ) reduced the negative effect of the above mentioned. The Group registered it’s share in the profits of the IMC which amounted to 16.8 million SAR in the first half of the Year 2015, with an increase of 30.2%, compared with profits amounted to 12.9 million SAR in the same period of last year. Worth mentioning that the Group started to apply the equity method of accounting for its investment in the IMC starting from the first quarter of the Year 2015; due to a significant influence resulting from the appointment of two representatives of Fitaihi Holding Group in the board of the IMC. The investment balances, retained earnings and financial results have been retroactively restated in the current quarter and same quarter of last year. Zakat has declined, with an amount of 360,000 SAR, by 9.4% in the first half of the Year 2015. In addition to the decrease of other expenses by 94%, totaling 452,000 SAR during the first half of the Year 2015, compared with the same period of last year, which helped in reducing the negative influence of the decrease in net profits. |
| Reasons of increase (decrease) for quarter compared with previous quarter |
The increase in net profits in the second quarter of the Year 2015, compared with the net profits of the first quarter of the Year 2015 (the previous quarter) is mainly due to the decrease in sales by 4.5%, as the Group achieved sales amounting to 72.0 million SAR in the second quarter of the Year 2015, compared with sales amounting to 68.9 million SAR in the first quarter of the Year 2015. In addition to the increase in gross profits of sales, by 6.5%, totaling 35.8 million SAR in the second quarter of the Year 2015, compared with an amount of 33.6 million SAR in the first quarter of the Year 2015 (the previous quarter), with an increase of 2.2 million SAR. Moreover, the achievement of an increase by 53.7% in investment earnings amounting to 6.3 million SAR in the second quarter of the Year 2015, compared with 4.1 million SAR achieved in the first quarter of the Year 2015 (previous quarter). Zakat has increased, with an amount of 180,000 SAR, by 11% in the second quarter of the Year 2015 compared with the first quarter of the Year 2015 (previous quarter). In addition to the increase of total expenses by 3.8%, totaling 1 million SAR during the second quarter of the Year 2015, compared with the first quarter of the Year 2015 (previous quarter). Worth mentioning that the Group registered its share in the profits of an associated company, the IMC, which amounted to 7.9 million SAR in the second quarter of the Year 2015, with a decrease of 11.2%, compared with profits amounted to 8.9 million SAR in the first quarter of the Year 2015 (previous quarter). |
| Reclassifications in quarterly financial results |
Certain comparative figures been reclassified to conform with the presentation of the current period. The Group started to apply the equity method of accounting for its investment in the IMC starting from the first quarter of the Year 2015. Hence, the Group’s share in the net profits of the IMC has been registered and the investment accounting of this share has been adjusted accordingly. The investment balances, retained earnings and financial results have been retroactively restated in the current quarter and comparative periods. |
