Al Kathiri Holding Company announces the preliminary financial results for the period ending on 09-30-2023 (nine months)

ItemCurrent QuarterThe Same Quarter Of The Previous YearThe Change%Previous QuarterThe Change %
Sales/Revenue30,003,14832,557,096-7.8432,666,863-8.15
Gross profit (loss)11,920,4517,391,94761.2610,756,24110.82
Operating profit (loss).3,270,1532,199,46748.682,472,87332.24
Net profit (loss) after zakat and tax1,064,6231,617,727-34.19666,16959.81
Total comprehensive income1,064,6231,617,727-34.19666,16959.81
All numbers are in (real) Saudi riyals
ItemCurrent PeriodSimilar Period Of The Previous YearThe Change%
Sales/Revenue94,784,51078,562,62820.65
Gross profit (loss)31,724,54814,349,752121.08
Operating profit (loss).8,185,071-2,225,180
Net profit (loss) after zakat and tax3,288,931-3,927,354
Total comprehensive income3,288,931-3,927,354
Total shareholders’ equity (after excluding minority interests)138,470,200129,823,5456.66
Earnings (loss) per share0.01-0.02
All numbers are in (real) Saudi riyals
ItemClarification
The reason for the increase (decrease) in net profit during the current quarter compared to the same quarter of the previous year is:The reason for the decrease in profit during the current quarter compared to the same quarter of the previous year is:• General and administrative expenses increased from 1.2 million Saudi riyals in the third quarter of 2022 to 4.2 million Saudi riyals in the third quarter of 2023. This represents an increase of 240%, and the reason for the increase is due to the calculation of an allowance for credit losses for the period ending on 9/30/2023.
The reason for the increase (decrease) in net profit during the current quarter compared to the previous quarter is:The reason for the increase in profit during the current quarter compared to the previous quarter of the current year is due to:• An increase in revenues from contracting projects during the current quarter compared to the previous quarter.• Decrease in production costs during the current quarter compared to the previous quarter, which reflected positively on net profit.
The reason for the increase (decrease) in net profit during the current period compared to the similar period of the previous year is:The reason the company achieved a net profit during the current period compared to the losses it incurred during the similar period of the previous year is due to:• Concrete sales increased by 21.4% in the period ending September 30, 2023 compared to the period ending September 30, 2022.• On the contrary, cement sales decreased by 55% in the period ending 9-30-2023 compared to the period ending 9-30-2022.• Private projects also witnessed a significant increase of 422%, compared to the period ending on September 30, 2022 AD, due to the company’s new projects.• Gravel and sand sales achieved revenues of 6.7 million Saudi riyals during the nine-month period ending in 2023.• Panel sales decreased by 32.7% in the period ending 9-30-2023 compared to the period ending 9-30-2022.• Raw material costs decreased by 10% in the period ending September 30, 2023, compared to the period ending September 30, 2022, as it was affected by the decline in cement prices.
The nature of the auditor’s opinionUnmodified opinion
An observation, reservation, or drawing attention as stated in the external auditor’s reportnothing
Reclassification of some comparative figuresCertain comparative figures have been reclassified to conform to the current period presentation.
additional informationEarnings per share and the weighted average number of shares have been adjusted for the nine-month period ending on September 30, 2022 AD in order to be consistent with the weighted average number of new shares after their increase during the year 2023 AD. The calculation of basic/diluted earnings per share is based on the profit attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding. Earnings per share for the nine months ending September 30, 2023 AD were calculated on the basis of the weighted average number of shares outstanding at the end of the period. Diluted earnings per share are the same as basic earnings per share, as the company has no convertible securities or diluted financial instruments to exercise. The weighted average number of shares on September 30, 2022 was adjusted retrospectively to be consistent with the weighted average number of new shares after their increase during the year 2023 (Note 1), as required in accordance with International Accounting Standard No. 33 (Earnings per Share).