Anaam Holding records losses of SR2.8 mln during the 3Q, an increase of 148%

Anaam International Holding Group recorded losses after zakat and tax of SR2.5 million during the third quarter, compared to SR1.14 million during the same quarter of the previous year.

This came after Anaam International Holding Group announces its interim financial results for the period ending on 2021-09-30 (nine months).

The operational loss amounted to SR3.2 million during the third quarter, compared to losses of SR2.2 million during the same quarter of the previous year, an increase of 45.5%.

The gross profit amounted to SR701 thousand during the third quarter, compared to a total loss of 648 thousand riyals during the same quarter of the previous year.

The net loss after zakat and tax during the current period amounted to SR8 million riyals, compared to losses of SR1.29 million during the same period of the previous year, an increase of 524.86%.

The reason for achieving profits for the current quarter (third of 2021) compared to losses for the same quarter of the previous year is due to:

Net profit is achieved for the current quarter compared to the losses in same quarter of the previous year is due to the gain on disposal of assets of discontinued operations. Gain of 24.6 million riyals is achieved by selling the assets of Al-Jouf project during the current quarter also there is an increase in sales by 30% and decrease in cost of sales for the current quarter by 42%, which positively affected achieving a gross profit for the current quarter compared to a gross loss for the same quarter of the previous year, increase in general and administrative expenses as a result of the increase in staff costs, led to a higher operating loss for the current quarter compared to the same quarter of pervious year.

The reason for achieving profits for the current quarter (third of 2021) compared to realizing losses for the previous quarter of the same year is due to:

The reason for achieving net profits for the current quarter compared to the losses in the previous quarter of the current year is mainly due to the gain on disposal of assets of discontinued operations as a result of selling Al-Jouf project during the current quarter at an amount of 24.6 million riyals, the increase in sales and other income has also contributed to the increase in the total profit for the current quarter compared to the previous quarter.

The reason for realizing profits during the current period compared to realizing a loss for the same period of the previous year is due to the following:

The reason for realizing a net profit for the current period compared to realizing a loss for the same period last year is due to the realization of gain on disposal of assets of discontinued operations as a result of selling Al-Jouf Agricultural Project during the current period at an amount of 24.6 million riyals and a decrease in the cost of sales for the current period by 32% as a result of a decrease feed sales, which positively affected the increase in gross profit for the current period by 157% compared to the same period of the previous year, increase in general and administrative expenses as a result of the increase in staff costs, led to a higher operating loss for the current period compared to the same period of the previous year.

Basis for adverse conclusion

During the three-month period ended September 30, 2021, the Group acquired 51% equity interest in a subsidiary against a consideration of SR 24,480,000. Management of the Group has not consolidated the financial information of the subsidiary in the accompanying interim condensed consolidated financial statements as management of the subsidiary is still in the process of preparing the financial statements of the subsidiary as of the date of the acquisition and as of September 30, 2021, which is not in line with requirements of IAS 34, as endorsed in the Kingdom of Saudi Arabia. Had the financial information of the subsidiary consolidated in the accompanying interim condensed consolidated financial statements, the interim condensed consolidated financial statements would have been materially different.

Qualified conclusion

The company pointed out that “Our review indicates that, because the Group has not consolidated the financial information of the subsidiary, as described in the preceding paragraph, the accompanying interim condensed consolidated financial information is not prepared, in all material respects, in accordance with IAS 34 that is endorsed in the Kingdom of Saudi Arabia.”

“Some comparative figures have been reclassified to conform to the current presentation., the company concluded.