| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is |
Q1 2024 revenue, excluding accounting construction revenue, grew by 7.9% from same quarter last year on the back of overall improvement across all segments. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is |
Reported net loss for Q1FY24 was SAR 21.2 million, compared to Net Income of SAR 19.5 million for Q1’23. The decrease in net profit for the current quarter compared to the same quarter last year is due to the following reasons:
• Gross profit for Q1 2024 stood at SAR 132.9 million, an improvement of 2.9% from Q1 2023. Gross margin declined to 51.6% from 54.1% due to increase in direct costs driven by an increase in depreciation and amortisation as a result of increase in capital expenditure during Q4 2023.
• Additionally, there was an increase in operating costs and finance charges due to an increase in debt and borrowing rates which adversely affected net profit during the quarter.
• Decline in share of profit from equity accounted investees mainly due to one off exceptional net loss of SAR 59.2 million in Tawzea (SISCO Holding’s share SAR 29.6 million) arising from a one-off provision for additional costs in three EPC (Engineering, procurement and construction) projects. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is |
Q1 2024 revenue, excluding accounting construction revenue, declined by 6.7% from previous quarter due to red sea disruption of supply chain affected Port and Logistics business. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is |
The decline in net profit for Q1 2024 by 411% compared to Q4 2023 is due to:
• Decline in margins resulting from increased direct costs, mainly depreciation.
• Higher operating costs and financial charges due to increase in borrowing rates
• Decline in share of profit from equity accounted investees mainly due to one off exceptional net loss of SAR 59.2 million in Tawzea (SISCO Holding’s share SAR 29.6 million) arising from a one-off provision for additional costs in three EPC (Engineering, procurement and construction) projects. |
| Statement of the type of external auditor's report |
Unmodified conclusion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) |
None |
| Reclassification of Comparison Items |
Financial statements for the current period have been prepared according to the International Financial Reporting Standards (IFRS) that are endorsed in the Kingdom of Saudi Arabia and based on that the presentation, measurement, recognition, and disclosure for some of the financial data has been changed to comply with IFRS accounting policies as adopted in the Kingdom. |
| Additional Information |
In accordance with IFRIC 12 (IFRS Interpretations Committee), the reported revenue includes accounting construction revenue of SAR 9.3 million. There is no impact on gross profit or net profit as there is a corresponding accounting construction cost of SAR 9.3 million recognized in the cost of revenue. |
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