Zamil Industrial Investment SJSC : Announces Consolidated Interim Financial Results for the Period Ending 31 December 2016 (Twelve Months)

Zamil Industrial Investment Co. (Zamil Industrial) has announced its consolidated interim financial results for the period ending 31 December 2016.

Net profits for the fourth quarter of 2016 were SAR 58.7 million (USD 15.6 million), compared with SAR 57.5 million (USD 15.3 million) during the same period in 2015, an increase of 2.2 percent, and SAR 40.1 million (USD 10.7 million) posted in the third quarter, an increase of 46.5 percent.

Gross profits for the fourth quarter of 2016 were SAR 349.3 million (USD 93.1 million), compared with gross profits of SAR 374.6 million (USD 99.9 million) for the same period in 2015, a decrease of 6.7 percent.

Operating profits during the fourth quarter of 2016 were SAR 88.5 million (USD 23.6 million), compared with SAR 126.6 million (USD 33.8 million) for the same period in 2015, a decrease of 30.1 percent.

During the twelve months ended 31 December 2016, net profits were SAR 201 million (USD 53.6 million), compared with SAR 263 million (USD 70.1 million) for the same period in 2015, a decrease of 23.6 percent.

Gross profits for the twelve months were SAR 1,228.9 million (USD 327.7 million), compared with SAR 1,305.3 million (USD 348.1 million) for the same period in 2015, a decrease of 5.8 percent.

Operating profits for the twelve months were SAR 336.4 million (USD 89.7 million), compared with SAR 407.5 million (USD 108.7 million) for the same period in 2015, a decrease of 17.5 percent.

Earnings per share for the twelve months that ended on 31 December 2016 were SAR 3.35, compared with SAR 4.38 during the same period in 2015.

The increase in net profits in the fourth quarter of 2016 over the same quarter of 2015 resulted from an increase in other income and non-controlling interests, as well as the reduction in impairment loss of non-current assets. The decrease in income from main operations resulted from lower sales of core products in the Air Conditioning (AC) and Steel sectors, which were primarily attributable to project delays in Saudi Arabia because of a general slowdown in the contracting business ecosystem.

The decreases in net profits and operating margins in the twelve-month period, when compared with the same period last year, were attributed to lower sales of core products in the AC and Steel sectors, which were primarily attributable to the project delays in Saudi Arabia and general slowdown in contracting. The reduction in net profits is also attributed to the increase in financial charges and taxes, as well as the decrease in income from associate investments and other income.

The increase in net profits in the fourth quarter of 2016, when compared with the third quarter of 2016, resulted from higher sales and operating margins in the AC and Steel sectors, as well as the increase in other income and non-controlling interests.

Certain figures for the fourth quarter of 2015 have been reclassified to conform to the presentation in the current period.

Other notes:

1. Revenues during the fourth quarter of 2016 amounted to SAR 1,199.2 million (USD 319.8 million), compared with SAR 1,452.5 million (USD 387.3 million) for the same period in 2015, a decrease of 17.4 percent.
2. Revenues during the twelve months ended 31 December 2016 amounted to SAR 4,950.9 million (USD 1,320.2 million), compared with SAR 5,488.6 million (USD 1463.6 million) for the same period in 2015, a decrease of 9.8 percent.
3. Equity attributable to shareholders (after the elimination of Minority Interest) as of 31 December 2016 amounted to SAR 1,939.5 million (USD 517.2 million), compared with SAR 1,885.1 million (USD 502.7 million) as of 31 December 2015, an increase of 2.9 percent. Comparison figure was based on the audited financials as of 31 December 2015.