Fitaihi Holding Group announces the annual consolidated financial results for the period ending on 31-12-2015
| ELEMENT | CURRENT YEAR | PREVIOUS YEAR | % CHANGE |
|---|---|---|---|
| Net profit (loss) | 5,724,064 | 70,146,833 | -91.84 |
| Earning or loss per share, Riyals | 0.1 | 1.28 | – |
| Gross profit (loss) | 101,120,602 | 166,543,416 | -39.28 |
| Operational profit (loss) | -17,607,809 | 50,880,394 | – |
| All figures are in Saudi Arabia, Riyals | |||
| ELEMENT | EXPLAINATION |
|---|---|
| Reasons of annual financial results | The decline in net profits in the Year 2015, compared to the Year 2014, is mainly due to the following:
1- The decline in sales, by 11.7%, as the Group achieved sales amounting to 263.6 million SAR in the Year 2015, compared with sales amounting to 298.4 million SAR in the Year 2014. This decrease led the gross profit of sales declined by 10.8%, with an amount of 15.5 million SAR, to 127.4 million SAR in the Year 2015, compared with an amount of 142.9 million SAR in the Year 2014. 2- A loss in investment amounting to 26.3 million SAR achieved in the Year 2015, compared with investment earnings amounting to 23.6 million SAR in the Year 2014, is mainly due to the following: A- Recording impairment loss, amounting to 40.7 million SAR, in the value of investments available for sale, due to the decline in the stock markets. B- Recording investment earnings, in the Year 2014, amounting to 12 million SAR, as a result of selling a part of the shares owned in the Oriental Weavers Company, in Egypt, as per Tadawul announcement released on 15-4-2015. 3- A provision, of 4.9 million SAR, for slow moving inventory, was formed by the Group, in the Year 2015, with an increase of 3.7 million SAR, compared with a provision amounting to 1.2 million SAR formed in the Year 2014. 4- Recording a decline in the value of intangible assets with an amount of 2 million SAR, in the Year 2015, and Zakat has increased by 1.4%; totaling 7.2 million SAR in the Year 2015, compared with an amount of 7.1 million SAR in the Year 2014. The positive effect resulted from recording the share of the Group in the profits of an associated company (the International Medical Center), reduced the negative impact of the above mentioned; where the Group has recorded its share amounting to 29.8 million SAR, in the Year 2015, compared with 25.7 million SAR, in the Year 2014, representing an increase by 16%. Moreover, total sales, administrative and distribution expenses were decreased by 2.4%; from 114.5 million SAR in the Year 2014, to 111.8 million SAR in the Year 2015. In addition, an increase by 54.3% in other earnings was achieved, from 972 thousand SAR in the Year 2014, to 1.5 million SAR in the Year 2015. |
| Reclassifications in annual 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 beginning 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 Year 2014. |
