Aseer Losses Decline to SR26.6 mln during the 3Q, down 10.4%

Aseer trading, tourism and manufacturing recorded losses after zakat and tax of SR26.6 million during the third quarter, compared to losses of SR29.7 million during the same quarter of the previous year, a decrease of 10.44%.

This came after Aseer co. announces its interim financial results for the period ending on 2021-09-30 (nine months)

The operational losses amounted to SR4.2 million during the third quarter, compared to SR4.9 million during the same quarter of the previous year, a decrease of 14.28%.

The gross profit amounted to SR91.7 million during the third quarter, compared to SR95.4 million during the same quarter of the previous year, a decrease of 3.88%.

The net loss after zakat and tax during the current period amounted to SR28.7 million, compared to losses of SR32.8 million during the same period of the previous year, a decrease of 12.49%.

The loss per share during the current period amounted to SR 0.23, compared to losses of SR0.26 during the same period of the previous year.

The reason of decreasing losses is decreasing the loss from operation resulting mainly from decreasing loss from investment, decrease in general and administration expenses, not recording impermanent expenses of property, plant and equipment verses recording impermanent expenses of property, plant and equipment during the same quarter of the previous year in addition to recording foreign currency exchange gain compared to foreign currency exchange loss during the same quarter of the previous year, decrease in finance expenses and decrease in zakat expense & income tax

The reason of increasing losses is due to record operation loss this quarter verses operation profit in the previous quarter resulting mainly from decrease in gross profit resulting from record loss in investment this quarter verses profit from investment in the previous quarter, decrease in other operating income, increase in finance expense, and increase in zakat expense.

The reason of decreasing losses is due to increasing operation profit resulting mainly from decrease in general and administration expenses, recording other operating income verses other operating expenses for the same period last year, not recording impermanent expenses of property, plant and equipment verses recording impermanent expenses of property, plant and equipment for the same period last year, achieving foreign currency exchange gain compared to foreign currency exchange loss same period last year, decrease in finance expense and decrease in zakat expense.

The company said it draws attention to note 9 accompanying the interim condensed consolidated financial statements. It states that during the period ended 15 December 2019, company raised two legal cases through Riyadh Public Court against the land seller and the broker of north Riyadh land – Al Khair district to return paid amount back.

The court decision has been issued in November year 2020 to enforce the land seller to return amount SR 202 million to Aseer company. During the period end by 30 June 2021, The defendant (the land seller) submitted a petition request to the Court of Appeal in Riyadh, to revoke the judgment and return the case after the expiration of the statutory objection period and after the company submitted to the enforcement court to implement the ruling against the defendant, Asser pointed out.  “The petition request was accepted and considered by the court that issued the judgment and ruled the case land seller requested a memorial to the court and his memorial has been accepted by the court. Based on that the court dismisses the case for lack of specific jurisdiction, our conclusion is not qualified in this matter.”

Certain figures for the previous year/pervious period were re-classified to conform with the presentation for the current year. “For more details, we draw attention to note 15 (Restatement of previous years) accompanying the interim condensed consolidated financial statements for period ended 30 September 2021.”

The company made an adjustment to the comparative figures for the fiscal year ended 31 December 2020 as a result of the classification of financial instruments from an equity instruments through other comprehensive income to a debt instrument through profit or loss, and there is no impact on the attached financial statements except on the balances in the statement of change in equity as of 1 January 2020 and 30 September 2020.

“For more details, we draw attention to note 14 (Restatement of previous years) accompanying the interim condensed consolidated financial statements for period ended 30 September 2021.” It concluded.