13 Aug

Fitaihi Announces its Consolidated Interim Financial Results for the Period Ending on 30-06-2023 (Six Months)

By Uncategorized

4180

FITAIHI GROUP

-2.01 %

1445/01/26     13/08/2023 08:00:39

Element ListCurrent QuarterSimilar Quarter For Previous Year%ChangePrevious Quarter% Change
Sales/Revenue14,292,30723,095,431-38.1223,404,008-38.93
Gross Profit (Loss)8,438,28116,721,291-49.5313,530,948-37.64
Operational Profit (Loss)1,751,95310,687,639-83.616,600,201-73.46
Net Profit (Loss) after Zakat and Tax851,9539,187,639-90.735,627,614-84.86
Total Comprehensive Income11,580,667-32,567,986–12,833,743-9.76
All figures are in (Actual) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar Period For Previous Year%Change
Sales/Revenue37,696,31855,545,325-32.13
Gross Profit (Loss)21,969,23230,861,071-28.81
Operational Profit (Loss)8,412,69018,461,574-54.43
Net Profit (Loss) after Zakat and Tax6,479,57016,840,161-61.52
Total Comprehensive Income24,414,413-44,019,078–
Total Share Holders Equity (after Deducting Minority Equity)463,505,582463,512,892-0
Profit (Loss) per Share0.240.61
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 isThe reason for the decrease in net profit during the second quarter of 2023, compared to a net profit during the second quarter of 2022, is mainly due to the following:
1- A decrease in received dividends from equity instruments at fair value during the second quarter of 2023 amounting to SAR 5.3 million, compared to received dividends amounting to SAR 14.4 million during the second quarter of 2022.

2- Sales decreased by 18.5%, reaching SAR 10.4 million during the second quarter of 2023, compared to SAR 12.8 million during the second quarter of 2022.

3- Selling, distribution, administrative, general, and other expenses increased by 10.8%, reaching SAR 6.7 million during the second quarter of 2023, compared to SAR 6 million during the second quarter of 2022.

Despite the following:
1- The Company’s share in the loss of the business results of an associate decreased during the second quarter of 2023, amounting to SAR 1.5 million, compared to SAR 4.1 million during the second quarter of 2022.

2- The decrease of zakat expense during the second quarter of 2023, by 40%, reaching SAR 0.9 million, compared to SAR 1.5 million during the second quarter of 2022.
The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year isThe reason for the decrease in net profit during the second quarter of 2023, compared to a net profit in the first quarter of 2023 is mainly due to the following:

1- Sales decreased by 42.8% during the second quarter of 2023, reaching SAR 10.4 million, compared to SAR 18.3 million during the first quarter of 2023.

2- Achieve losses from the Company’s share of the business results of an associate during the second quarter of 2023, amounting to SAR 1.5 million, compared to achieving profits of SAR 4 million during the first quarter of 2023.

Despite the following:
1- An increase in received dividends from equity instruments at fair value during the second quarter of 2023 amounting to SAR 5.3 million, compared to received dividends amounting to SAR 1.1 million during the first quarter of 2023.

2- A decrease in selling, distribution, and other general and administrative expenses by 4.7%, amounting to SAR 6.7 million during the second quarter of 2023, compared to SAR 7 million during the first quarter of 2023.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year isThe reason for the decrease in net profit during the first half of 2023, compared to a profit in the same period of 2022, is mainly due to the following:

1- A decrease in received dividends from equity instruments at fair value during the first half of 2023, amounting to SAR 6.4 million, compared to received dividends amounting to SAR 15.3 million during the first half of 2022.

2- A decrease in profits from the Company’s share in the business results of an associate, by 41.1%, amounting to SAR 2.4 million in the first half of the year 2023, compared to profits amounting to SAR 4.2 million in the same period of last year.

3- An increase of 12% in sales, distribution, administrative, and other expenses amounting to SAR 13.7 million in the first half of 2023, compared to SAR 12.2 million during the same period of last year.

Despite the following:

1- The increase in sales profit margin during the first half of 2023, compared to the first half of 2022, despite the decrease in sales during the first half of 2023, compared to the first half of 2022, due to the difference in sales mix.
Statement of the type of external auditor’s reportQualified conclusion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor OpinionBasis for Qualified Conclusion
As explained in Note No. (5) to the interim condensed consolidated financial statements, the investment balance in the associate company amounted to SAR 177 million, which is accounted for using the equity method in the consolidated statement of financial position as of June 30, 2023. The Group also included its share of the investee company’s business results with an amount of SAR 2,5 million for the six-month period ending on June 30, 2023. In addition to that, as shown in Note No. (17), the Group made amendments to the results of its share of the associate company for the year ending on December 31, 2022, with an amount of SAR 10,2 million according to the internal financial statements of the associate company (unaudited – amended), we were not able to obtain sufficient and appropriate evidence to verify the validity of the amount of the investment balance for the associate company and the results of the three and six-month periods ending on June 30, 2023, in addition to the amendments of the year ended on 31 December 2022, which were recognized according to the Group’s estimates and the unaudited financial statements of the associate company, due to the non-completion of the audit and review of the financial statement. Accordingly, we were unable to determine whether any amendments were necessary to these amounts and their impact on the financial statements as a whole for the current period and the comparative year.

Qualified Conclusion
Except for the adjustments to the interim condensed consolidated financial statements detailed above in the “Basis for Qualified Conclusion,” based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34, as endorsed in the Kingdom of Saudi Arabia.
Reclassification of Comparison ItemsCertain prior-year figures have been reclassified to conform to the presentation of the current period.
Additional InformationIt should be noted that the Company’s share of the associate company’s business results was recorded based on the financial statements prepared by the associate company’s management, according to the latest available information, as the associate company’s financial statements have not been issued to date. The Company’s management is following up the necessary procedures to complete the preparation of these financial statements and previous years’ adjustments have been made by reducing the item of “Investment in an associate company” and the item of “Retained earnings” by an amount of SAR 10.2 million based on the updated information obtained from the associate company. Thus, the comparison numbers have been amended accordingly. (As attached)

It should be noted that the financial statements of the associate company are expected to be obtained during the third quarter of 2023.

It is expected that the qualified conclusion contained in the auditor’s report will be corrected during the third quarter of 2023.
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