18 Oct

FITAIHI HOLDING GROUP ANNOUNCES THE INTERIM CONSOLIDATED FINANCIAL RESULTS FOR THE PERIOD ENDING ON 30-09-2015 (NINE MONTHS)

By Announcement
ELEMENT CURRENT QUARTER SIMILAR QUARTER FOR PREVIOUS YEAR % CHANGE CURRENT PREVIOUS QUARTER % CHANGE PREVIOUS
Net profit (loss) 5,817,295 12,831,712 -54.66 20,011,996 -70.93
Gross profit (loss) 32,665,942 40,121,109 -18.58 42,140,204 -22.48
Operational profit (loss) 392,925 8,689,637 -95.48 14,486,542 -97.29
All figures are in Saudi Arabia, Riyals
ELEMENT CURRENT PERIOD SIMILAR PERIOD FOR PREVIOUS YEAR % CHANGE
Net profit (loss) 44,332,177 61,413,422 -27.81
Gross profit (loss) 112,529,817 134,468,781 -16.32
Operational profit (loss) 25,957,238 48,806,209 -46.82
Earning or loss per share, Riyals 0.81 1.12 –
All figures are in Saudi Arabia, Riyals
ELEMENT EXPLAINATION
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 to the net profits in the same quarter of last year is mainly due to the following:
1- The decline in sales, by 26.7%, as the Group achieved sales amounting to 56.7 million SAR in the third quarter of the Year 2015, compared with sales amounting to 77.4 million SAR in the same quarter of last year. This decrease led the gross profit of sales decline, with an amount of 9.8 million SAR, to 27.8 million SAR in the third quarter of the Year 2015, compared with an amount of 37.6 million SAR in the same quarter of last year.
2- The increase by 2.7% in total expenses, with 0.84 million SAR, from 31.43 million SAR, in third quarter of last year, to 32.27 million SAR in the third quarter of the Year 2015. Worth mentioning that, during the third quarter of the Year 2015, a provision, of 4 million SAR, for slow moving inventory, was formed.
3- The decrease in the profits of an associated company (The International Medical Center, or IMC), as the Group recorded its share in the profits of the IMC which amounted to 6.1 million SAR in the third quarter of the Year 2015, with a decrease of 4.7%, compared with a profit share amounted to 6.4 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 presented periods. The share of the Group in the financial results, of the Year 2014 of the IMC, has been recorded equally in the financial quarters.
The positive effect resulted from achieving an increase in the net investment earnings, by 92.5%, reduced the negative impact of the above mentioned, where the investment earnings were amounting to 4.87 million SAR, during the third quarter of the Year 2015, compared with 2.53 million SAR in the same quarter of last year. In addition to the achievement of net other revenues amounting to 1.6 million SAR in the third quarter of the Year 2015, compared with 0.2 million SAR net other expenses in the same quarter of last year.
Reasons of increase (decrease) for period compared with same period last year The decline in net profits in the first nine months of the Year 2015 compared to the same period of last year is mainly due to the following:
1- The decline in sales, by 12.8%, as the Group achieved sales amounting to 197.7 million SAR in the first nine months of the Year 2015, compared with sales amounting to 226.8 million SAR in the same period of last year. This decrease led the gross profit of sales decline by 12.2%, with an amount of 13.6 million SAR, to 97.3 million SAR in the first nine months of the Year 2015, compared with an amount of 110.8 million SAR in the same period of last year.
2- The decrease in investment earnings, by 35.2%, totaling 15.3 million SAR in the first nine months of the Year 2015, compared with an amount of 23.6 million SAR in the same period of last year.
3- The increase by 1.1% in total expenses, with 0.9 million SAR, from 85.7 million SAR, in the first nine months of last year, to 86.6 million SAR in same period of the Year 2015. Worth mentioning that, during the current period, a provision, of 4 million SAR, for slow moving inventory, was formed.

The positive effect resulted from recording the Group’s share in the profits of an associated company (the International Medical center, or IMC) reduced the negative impact of the above mentioned. The Group recorded its share in the profits of the IMC which amounted to 22.9 million SAR in the first nine months of the Year 2015, with an increase by 18.7%, compared with a profit share amounted to 19.3 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 presented periods. The share of the Group in the financial results, of the Year 2014 of the IMC, has been recorded equally in the financial quarters.
Zakat has declined, with an amount of 360,000 SAR, by 6.3% in the first nine months of the Year 2015, compared to the same period of last year. In addition to the achievement of net other revenues amounting to 1.5 million SAR in the first nine months of the Year 2015, compared with 0.6 million SAR net expenses, in the same period of last year.
Reasons of increase (decrease) for quarter compared with previous quarter The decline in net profits in the third quarter of the Year 2015, compared with the net profits of the second quarter of the Year 2015 (previous quarter) is mainly due to the following:
1- The decline in sales, by 21.3%, as the Group achieved sales amounting to 56.7 million SAR, in the third quarter of the Year 2015, compared with sales amounting to 72.0 million SAR in the second quarter of the Year 2015 (previous quarter). This decrease led the gross profit of sales decline by 22.3%, with an amount of 8.0 million SAR, to 27.8 million SAR in the third quarter of the Year 2015, compared with an amount of 35.8 million SAR in the second quarter of the Year 2015 (previous quarter).
2- The decline, by 23%, in investment earnings amounting to 4.87 million SAR in the third quarter of the Year 2015, compared with 6.32 million SAR achieved in the second quarter of the Year 2015 (previous quarter).
3- The increase, by 16.6%, in total expenses, with an amount of 4.6 million SAR, totaling 32.3 million SAR during the third quarter of the Year 2015, compared with an amount of 27.7 million SAR in the second quarter of the Year 2015 (previous quarter). Worth mentioning that, during the current period, a provision, of 4 million SAR, for slow moving inventory, was formed.
4- Zakat has increased, with an amount of 90,000 SAR, by 5%, in the third quarter of the Year 2015, compared with the second quarter of the Year 2015 (previous quarter).
5- The decline, by 22.8%, of the Group share in the profits of an associated company, the IMC, which amounted to 6.1 million SAR, in the third quarter of the Year 2015, compared with a profit share amounted to 7.9 million SAR in the second quarter of the Year 2015 (previous quarter).
The positive effect resulted from recording net other revenues amounting to 1.6 million SAR, in the third quarter of the Year 2015, compared with 0.3 million SAR net other expenses, in the second quarter of the Year 2015 (previous quarter), reduced the negative impact of the above mentioned.
Reclassifications in quarterly financial results Certain comparative figures have been reclassified to conform to 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 recorded 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 presented periods.

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