Abdullah Al Othaim Markets Co. — Earnings Release 2016

Mar 16, 2017

Abdullah Al Othaim Markets Co. announces the annual financial results for the period ending on 31-12-2016

4001 · 16/03/2017 08:02:38 · Announcement #46016 · View on Saudi Exchange

Abdullah Al Othaim Markets Co. announces the annual financial results for the period ending on 31-12-2016

Element	Current year	Previous year	% Change
Net profit (loss)	230.03	230.88	-0.37
Earning or loss per share, Riyals	5.11	5.13	-
Gross profit (loss)	1,271.66	998.47	27.36
Operational profit (loss)	235.24	209.77	12.14

*All figures are in (Millions) Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of annual financial results	1. Consolidated net income of the group declined by 0.37% despite the growth in sales and improvement in gross profit, due to increase in operating, financing and zakat expenses. In addition, the results of the current year included a fire incident loss occurred during 2015 at one of the manufacturing facilities of Riyadh Food Industries Co. (a subsidiary owned 55%), the financial impact of which amounting SR 8.6 million. Also, the financial results of the Group included impairment loss in the assets of Thamarat Al Qassim Co. (a subsidiary owned 90%), the financial impact of which was SR 3.98 million due to discontinuing the activities of outdoor farming and livestock production. 2. Gross profit increased by 27.36% due to growth in sales of existing branches and the expansion in opening new branches by 18.82% in addition to the improvement in gross profit ratio. 3. Operating income increased by 12.14% due to improvement in gross profit and rent revenues in despite of increase in S&D, G&A expenses, particularly personnel and promotional costs in addition to increase in the prices of fuel and electricity.
Reclassifications in annual financial results	Some comparative figures have been reclassified to be consistent with the presentation of the current year.
Other notes	1. Total sales for the year is SR 7,171.7 million against SR 6,035.8 million for last year with a growth of 18.82%. 2. Total shareholders' equity (net of non-controlling interest) as at the end of the current year is SR 1,239.6 million against SR 1,104.6 million at the same date last year with a growth of 12.22%. 3. Net Losses resulted from translating the financial statements of the wholly owned subsidiary (Al Othaim Markets Company Egypt) and the branch of the associated company (Abdullah Alothaim for real estate investment and development) amounting SR 2.72 million for the fiscal year 2016 as a result of the Egyptian government's resolution to float foreign currency exchange rates against the Egyptian pound on 03/11/2016. The losses were presented within (Shareholders' Equity) in the consolidated balance sheet at 31/12/2016.

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