‎“Tabuk Agricultural” achieved net profit of SR6 mln during Q3‎

Tabuk Agricultural Development Co. achieved a net profit after zakat and tax in the third quarter of 5.8 million riyals, compared to a loss of 12.2 million riyals in the same quarter of last year.

The operational profit amounted to 2 million riyals in the third quarter, compared to a loss of 4.6 million riyals in the same quarter of the previous year

In the 9-month period, the net loss after zakat and tax decreased to 21.7 million riyals, compared to 37.3 million riyals in the same period last year, at a rate of 42%.

The total shareholders’ equity “without minority rights” amounted to 274.1 million riyals in the current period, compared to 330 million riyals in the same period last year, a decrease of 17%.

The loss per share in the current period amounted to 0.6 riyals, compared to 1.21 riyals in the same period last year.

The reasons for realizing a net profit during the current quarter compared to a net loss for the same quarter of the previous year are the increase in revenues and the decrease in the cost of revenues rate, which led to realizing a gross profit rate for the current quarter that is higher than the same quarter of the previous year, as well as an increase in the company’s share from an associate company, in addition to the reverse of provision for expected credit losses, and a decrease in the zakat provision.

The reasons for realizing net profit during the current quarter compared to a net loss for to the previous quarter of the current year are the increase in revenues and the decrease in the cost of revenues rate, which led to realizing a gross profit rate for the current quarter that is higher than the previous quarter of the current year, as well as an increase in the company’s share from an associate company, in addition to the reverse of provision for expected credit losses, and a decrease in the zakat provision.

The reasons for the decrease in net loss during the current period compared to the same period of the previous year are the increase in revenues and the decrease in the cost of revenues rate, which led to realizing a gross profit rate for the current period that is higher than the same period of the previous year, as well as an increase in the company’s share from an associate company, in addition to the reverse of provision for expected credit losses, and the increase in the other income.

Additional Information:

OTHER MATER:

The consolidated financial statement of Tabuk Agricultural Development Company for the year ended 31 December 2021 and the interim condensed consolidated financial statements for the three-month and nine-month periods ended 30 September 2021, were audited and reviewed by another auditor who expressed an qualified opinion dated 3 Ramadan 1443H corresponding to 4 April 2022G and unqualified conclusion dated 6 Rabi-Al-Thani 1443H corresponding to 11 November 2021G, accordance with international financial reporting standard that are endorsed in the kingdom of Saudi Arabia.

Following is the basis of qualified opinion on the consolidated financial statements for the year ended 31 December 2021.

We didn’t obtain the financial statements of Eastern Asia Company for Agricultural investment, As a result of this matters, we were unable to determine whether any adjustments might have been found necessary to include in the consolidated statement of financial position as at 31 December 2021 and the consolidated financial statements for the year ended on 31 December 2021, including consolidated statement of profit or loss and other comprehensive income, and consolidated statement of changes in equity and consolidated statement of cash flows.

OTHER STATUTORY AND REGULATORY REQUIREMENTS

The consolidated financial statement for year ended 31 December 2021 have not been approved by shareholders to date, which is a violation of the company’s law.

Earnings per share:

The calculation of basic earnings per share has been based on the distributable earnings attributable to shareholders of ordinary shares and the weighted average number of ordinary shares outstanding at the date of the financial statements amounting to 39,176,700 shares.

The basic loss per share resulted from period losses amounted to SAR (0.60), compared to an amount of SAR (1.21) for the same period of the previous comparative year.

Important and subsequent events:

On October 30, 2022, the Ministry of Justice ratified the title deed of the land of the Tabuk Agricultural Development Company with an area of 21,475 hectares.

No event has occurred subsequent to the interim condensed consolidated financial position date which requires the adjustment to, or disclosures, in these condensed interim consolidated financial statements.

The value of the accumulated losses as on 30/09/ 2022 GD amounted to 119.75 million Saudi riyals, which is equivalent to 30.6 % of the company’s capital of 391.767 million Saudi riyals, and the date of attaining these losses was 30/09/2022 GD, where the main reasons for these losses are the decrease in revenues, impairment of properties & equipment related to a subsidiary, increase in Value-Add Tax (VAT) reassessment, charging cost of issuing for shareholders equity instruments to retained losses, an increase in general & administrative expenses and the increase in selling & distribution expenses.

The company will complete the procedures and instructions issued by the Capital Market Authority regarding companies whose shares are listed in the Saudi stock market, whose accumulated losses amounted to 20% or more, and less than 35% of their capital.