Abdullah Al Othaim Markets Co. — Earnings Release 2017

Mar 20, 2018

Abdullah Al Othaim Markets Co. announces the annual financial results for the period ending on 31-12-2017

4001 · 20/03/2018 08:00:59 · Announcement #49752 · View on Saudi Exchange

Abdullah Al Othaim Markets Co. announces the annual financial results for the period ending on 31-12-2017

Element	Current year	Previous year	% Change
Net profit (loss)	449.5	228.07	97.09
Earning or loss per share, Riyals	9.99	5.07	-
Gross profit (loss)	1,441.87	1,211.3	19.03
Operational profit (loss)	322.5	236.51	36.36

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

Element	EXPLAINATION
Reasons of annual financial results	Consolidated net profit for the fiscal year 2017 increased by 97.09% compared to the previous year mainly due to: - Sales growth by 14.64% from existing and new branches. - Improved profit margin. - Increase in the rent income due to increase in rental spaces. - Non-recurring gains resulted from the sale of a shopping mall in Hail city during the year to an associate pursuant to the General Assembly resolution on 19/4/2017. The financial impact of the capital gain and the operating income of the mall during the year amounted to SR 111.94 million. This financial impact was presented in the Statement of Income under (Discontinued operations) after eliminating unrecognized gain as the Company owns 13.65% in the equity of the associate Abdullah Al-Othaim for Real Estate Investment and Development company (the buyer). - The performance of subsidiaries and associates improved due to the discontinuation of certain loss-making activities. The results of the corresponding year includes a fire incident loss occurred at one of the manufacturing facilities of an associate; the financial impact of which amounted SR 8.6 million.
Reclassifications in annual financial results	Comparative figures have been restated to be consistent with the presentation of the current period in accordance with IFRS adopted in the Kingdom of Saudi Arabia along with the other standards and releases adopted by SOCPA. The adoption of IFRS has resulted in a decrease in the net income of the corresponding period by SR 1,958,371 and a decrease in shareholders equity by SR 7,538,117. These changes are mainly attributable to the application of IAS 19 - Employee Benefits, as well as the discontinuance of consolidating the financial statements of a subsidiary with the Group's consolidated financial statements, where the control terms over the subsidiary were not fulfilled in accordance with IFRS 10.
Other notes	1. Total sales for the current year is SR 8,041.56 million against SR 7,014.54 million for last year with a growth rate of 14.64%. 2. Total comprehensive income for the current year is SR 442.81 million against SR 221.67 million for last year with an increase rate of 99.76%. 3. Total shareholders' equity -net of non-controlling interest- as at the end of the current year is SR 1,494.85 million against SR 1,232.04 million at the same date last year with a growth of 21.33%. 4. Net income for the current year (without discontinued operations) is SR 337.56 million against SR 236.23 million for last year with an increase of 42.89%. 5. Total comprehensive income for the current year (without discontinued operations) is SR 330.87 million against SR 229.82 million for last year with an increase of 43.97%. 6. Earnings per share for the current year (without discontinued operations) is SR7.50 against SR 5.25 for last year.

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