AFG International Co. — Earnings Release 2016

May 31, 2016

Fawaz Abdulaziz Alhokair Co. announces the annual financial results for the period ending on 31-03-2016

4240 · 31/05/2016 16:11:45 · Announcement #42836 · View on Saudi Exchange

Fawaz Abdulaziz Alhokair Co. announces the annual financial results for the period ending on 31-03-2016

Element	Current year	Previous year	% Change
Net profit (loss)	615.8	802.95	-23.31
Earning or loss per share, Riyals	2.93	3.82	-
Gross profit (loss)	1,733.25	1,787.18	-3.02
Operational profit (loss)	669.75	845.85	-20.82

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

Element	EXPLAINATION
Reasons of annual financial results	The decrease in Net Income in the twelve months compared to the same period last year is due to 1) decrease in net income for 4th quarter due to decrease in sales by 3.2% in the 4th quarter (7% decrease in Saudi market compared with same quarter last year which was positively impacted by the gift from The Custodian of the Two Holy Mosques , this was offset by increase in international sales ) and decrease in gross profit % for Saudi market by 12.2% in the 4th quarter . 2) Selling and general expenses increased by SR 19.9 M 3) increase in store closure cost by SR 56.5 M mainly impacted by restructuring cost and store closure cost in Spain (Blanco) and USA 4) Depreciation expenses increased by SR 45.6 M due to opening of new stores 5) Other income decreased by SR 29 M , finance charges increased by SR 21.4 M and tax expense reduced by SR 26.9 M 6) Net Income for Saudi Operation is SR 852 M and Net loss for international Operation is SR 236 M impacted by local currency devaluation and performance of Blanco Brand (Spain)
Reclassifications in annual financial results	Certain figure for the prior period have been reclassified to conform with presentation in the current period
Other notes	Sales for the twelve months is SR 7,277 million compared to SR 6,899 million for the same period last year , 5.5% Growth

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