اعلان شركة فواز عبدالعزيز الحكير وشركاه عن النتائج المالية الأولية للفترة المنتهية

A4240 ALHOKAIR0.52 (2.87 %)
1443/04/06 Thu Nov 11, 2021 09:14:08

Fawaz Abdulaziz Alhokair Co. announces its Interim Financial Results for the Period Ending on 2021-09-30 ( Six Months )

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Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	1,361.3	1,185.6	14.819	1,700.7	-19.956
Gross Profit (Loss)	232.3	51.9	347.591	332.6	-30.156
Operational Profit (Loss)	116.3	-4.2	-	128.2	-9.282
Net Profit (Loss) after Zakat and Tax	20.9	-98.2	-	45.7	-54.266
Total Comprehensive Income	23.7	-122.6	-	56.9	-58.347
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	3,062	1,750.6	74.911
Gross Profit (Loss)	564.9	-190.9	-
Operational Profit (Loss)	244.4	416.3	-41.292
Net Profit (Loss) after Zakat and Tax	66.6	-633.8	-
Total Comprehensive Income	80.6	-622	-
Total Share Holders Equity (after Deducting Minority Equity)	532.2	907.7	-41.368
Profit (Loss) per Share	0.33	-2.97
All figures are in (Millions) Saudi Arabia, Riyals

Accumulated Losses	Capital	Percentage %
969.2	2,100	46.2
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	Consolidated net profit increased to SAR 20.9 million in Q2-FY22, compared to a net loss of SAR 98.2 million in the same quarter of the previous year, mainly driven by: • Revenue: Increased by 14.8% in Q2-FY22, the equivalent of SAR 175.7 million, to SAR 1,361.3 million compared to the same quarter of the previous year, driven by the sustained consumption recovery both domestically and internationally. While the y-o-y increase of 14.8% for the quarter was solid, the Company was still operating against a backdrop of ongoing capacity limitations in shopping malls and F&B outlets in response to the Covid-19 pandemic. • Gross Profit: Increased by 348.0% in Q2-FY22, the equivalent of SAR 180.5 million, to SAR 232.3 million versus SAR 51.9 million in Q2-FY21 on the back of increased revenues and higher trading margins. As a result, Q2-FY22 gross profit margin came in at 17.1% in compared to the 4.4% recorded in Q2-FY21. The trend back to profitability continues as consumer behaviours normalize and society reopens following further easing of restrictions. • Selling, General and Administrative Expenses (SG&A): SAR 116.9 million compared to SAR 108.2 million in Q2-FY21. The 8.0%% increase was primarily due to the low base in the prior year as one-offs government support and rental relief were included while the Company continues to keep SG&A expenses under tight control. • Depreciation and Amortization Expense: Decreased by 49.8% y-o-y to SAR 38.3 million due to the ongoing store closures and unifying the useful life across the group which reduced their related Depreciation and Amortization Expense. • Net Finance Cost: Decreased by 16.5% in Q2-FY22 or the equivalent of SAR 14 million, due to the ongoing closure of non-profitable stores which reduced their related financing cost pertaining to IFRS16. • Zakat and Income Tax Expense: Increased by 162.6% in Q2-FY22, or the equivalent of SAR 15 million and this was mainly due to the increased tax base.
The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is	Consolidated net profit reduced to SAR 20.9 million in Q2-FY22, compared to a net profit of SAR 45.7 million in the previous quarter mainly driven by: • Revenue: Decreased by 20.0% in Q2 FY22 or the equivalent of SAR 339.4 million compared to previous quarter. The drop stems from the seasonality effect as Q1-FY22 coincided with Ramadan, which is our strongest season of the year. • Gross Profit: Decreased by 30.1% in Q2-FY22, the equivalent of SAR 100.3 million, to SAR 232.3 million versus a gross profit of SAR 332.6 million in Q1-FY22, as a result of the seasonal sequential decrease in revenue and the stickiness of some direct costs in the cost of revenue. Trading margins remained intact compared to pre-pandemic levels and hovered around the 43.8% despite the ongoing bottlenecks in global supply chains which is putting pressure on landed costs. • Selling, General and Administrative Expenses (SG&A): Decreased 18.1% to SAR 116.9 million compared to Q1-FY22 due to lower Ramadan season related expenses. • Zakat and Income Tax Expense: Increased by SAR 14.4 million to SAR 24.7 million in Q1-FY22, and this was mainly due to the increased tax base as of Q2-FY22 compared to Q1-FY22
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	Consolidated net profit increased to SAR 66.6 million in H1-FY22, compared to a net loss of SAR 633.8 million in H1-FY21 mainly driven by: • Revenue: Increased by 74.9%, or the equivalent of SAR 1,311.4 million, to SAR 3,062.0 million for H1-FY22 as the severe impact of containment measures in response to the Covid-9 pandemic witnessed in H1-FY21 were gradually eased and trade rebounded. • Gross Profit: SAR 564.9 million for H1-FY22 versus a gross loss of SAR 190.9 million in H1-FY21 due primarily to the decrease in revenues and the recognition of one-time inventory provisions in H1-FY21. • Selling, General and Administrative Expenses (SG&A): Increased 30.0% to SAR 259.7 million compared to H1-FY21 due to low base in the prior year as one-offs government support and rental relief were included in. • Depreciation & Amortization: Decreased by 32.8% to SAR 103.5 million compared to the same period of the previous year, due to the ongoing store rationalisation, which reduced their related Depreciation and Amortization Expense. • Net Finance Cost: Decreased by 25.6% to SAR 142.8 million due to the continuing closure of non-profitable stores which reduced their related financing cost pertaining to IFRS16. • Zakat and Income Tax Expense: Increased SAR 9.5 million to SAR 35.0 million as the company returned to profitability.
Statement of the type of external auditor's report	Unmodified conclusion
Reclassification of Comparison Items	Certain comparative figures have been reclassified to conform to the current period's presentation.
Additional Information	Procedures and instructions applicable to companies listed on the Saudi Stock Exchange whose accumulated losses reach 35% or more of the capital thereof will be applied. The Company had announced on 21/11/1442 H (01/07/2021G) on Tadawul that the Board of Directors has authorized the executive management to study ways to restructure the Company's capital to strengthen its financial position. Following a comprehensive review, the Board of Directors during its meeting on 5/4/1443 (10/11/2021) has decided to recommend to the EGM a capital decrease and a subsequent capital increase by way of a rights issue offering. A detailed Tadawul announcement regarding the capital alteration will be disclosed to the market in conjunction with this announcement as per the laws and regulations. Any future material developments will be announced in due course as stipulated by the laws and regulations.
Attached Documents	[Link]

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