ELEMENT

CURRENT QUARTER

SIMILAR QUARTER FOR PREVIOUS YEAR

% CHANGE CURRENT

PREVIOUS QUARTER

% CHANGE PREVIOUS

Net profit (loss)

162.6

147.8

10.01

219.1

-25.79

Gross profit (loss)

212.5

192.7

10.28

242.7

-12.44

Operational profit (loss)

156.4

133.2

17.42

210

-25.52

All figures are in (Millions) Saudi Arabia, Riyals

ELEMENT

CURRENT PERIOD

SIMILAR PERIOD FOR PREVIOUS YEAR

% CHANGE

Net profit (loss)

381.7

369.2

3.39

Gross profit (loss)

455.2

440.1

3.43

Operational profit (loss)

366.5

346.2

5.86

Earning or loss per share, Riyals

4.24

4.1

-

All figures are in (Millions) Saudi Arabia, Riyals

ELEMENT

EXPLAINATION

Reasons of increase (decrease) for quarter compared with same quarter last year

The increase in net profit is due to: - Increase in retail sales of electronics section driven by smart phones sales and video games sections.

- Relative improvement of profit margins of some sections due to the continuing improvement in products management.

Reasons of increase (decrease) for period compared with same period last year

The increase in net profit is due to: - Relative improvement of profit margins of most sections due to the continuing improvement in products management.
- Decrease of selling & distribution expenses.
- Decrease of general & administration expenses.

Reasons of increase (decrease) for quarter compared with previous quarter

- despite sales increase compared to previous quarter, gross profit and accordingly net profit declined due to the change in sales mix. The previous quarter sales comprised more weight of the relatively high profitable sections compared to the current quarter.
- Increase in selling & distribution expenses.
- Increase in general & administration expenses.
- Decrease of non-operating income.

Reclassifications in quarterly financial results

- Certain comparative figures for the prior period have been reclassified to conform with the presentation for the current period.

Other notes

- Turnover for the current quarter amounted to SR 1,693.3 m an increase of 6.8% compared to the same quarter last year SR 1584.8 m.
-Turnover for the current period amounted to SR 3,292.7 m an increase of 0.1% compared to the same period last year SR 3,289.8 m.
-Total comprehensive income for the current quarter amounted to SR 162.6 m an increase of 10.0% compared to the same quarter last year SR 147.8 m and a decrease of 25.8% compared to the previous quarter SR 219.1 m.
-Total comprehensive income for the current period amounted to SR 381.7 m an increase of 3.4% compared to the same period last year SR 369.2 m.
-Total shareholder's equity (no minority interest) as of 30th June, 2018 amounted to SR 1,562.2 m an increase of 5.7% as compared to SR 1,477.8 m as of 30th June, 2017.
- Two new showrooms were opened during the period one was on 1/1/2018 and the other was on 28/2/2018.
- Type of the external auditor's report: review report, unmodified conclusion.