According to a bourse filing on the Saudi Stock Exchange Tadawul on April 25, 2023, the net profit decreased during current quarter compared same period last year due to the following:
- Decrease in selling prices of company’s products in spite of increase in sales volumes of company’s products and decrease in prices of some feedstock.
- Decrease in Company’s share of profit from joint venture and associates.
The company's results for the current quarter were close to the results of the fourth quarter of 2022, due to converged to the level of product prices during the two quarters, except of some of the products were lower, despite an increase in the amount of sales.
The Company reclassified shipping and handling costs amounting to SR 61.4 million in same quarter last year from “Selling and distribution expenses” to “Revenue” in the consolidated statement of profit or loss based on the incoterms of the underlying transactions.Accordingly, the comparative financial statements for Q1 2022 has been re-stated.
The Company re-assessed its position during 2022 in relation to the control over Gulf Advance Cable Insulation Company (“GACI”) according to IFRS and concluded that GACI meets the definition of a joint venture and accordingly the investment in GACI was accounted using the equity method. Accordingly, the comparative financial statements for Q1 2022 has been re-stated.
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