| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | The main reason for the decrease in revenues during the first quarter of the fiscal year 2024 compared to the same quarter of the previous year, 2023, is due to the decrease in revenues from the printing sector and to the decrease in revenues from the packaging sector resulting from the loss of some external customers. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | The main reason for the increase in net loss during the current quarter compared to the same quarter of the previous year is due to the decrease in revenues, and to the increase in sales costs in addition to the increase in financing costs. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | The main reason for the increase in revenues during the first quarter of the fiscal year 2024 compared to the previous quarter is the improvement in sales of the packaging sector despite the decline in the printing sector due to restructuring. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | The main reason for the decrease in net loss during the current quarter compared to the previous quarter is due to the increase in revenues, in addition to the decrease in financing expenses, general and administrative expenses, and the increase in other revenues. |
| Statement of the type of external auditor’s report | Unmodified conclusion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | NA |
| Reclassification of Comparison Items | Certain figures for the comparison period have been reclassified to conform with the presentation for the current period. |
| Additional Information | • Total revenues during the current quarter amounted to 186.9 million riyals, compared to 210.93 million riyals for the same quarter of the previous year, a decrease of 11.39%, and compared to 172.08 million riyals in the previous quarter, an increase of 8.61%.• Total shareholders’ equity (after excluding minority interests) at the end of the current quarter amounted to 478.86 million riyals, compared to 622.60 million riyals for the same quarter of the previous year, a decrease of 23.09%, and compared to 637.94 million riyals at the end of the previous quarter, a decrease of 2.4%.• Accumulated losses amounted to 123.67 million riyals, representing 20.61% of the capital.On the date of publishing the announcement, the company’s accumulated losses amounted to 20.61% of the capital, with the total of these accumulated losses amounting to 123.67 million Saudi riyals, and the company will apply the procedures and instructions in this regard.Whereas Article Three of the “Procedures and Instructions for Companies whose Shares are Listed on the Financial Market and whose Accumulated Losses Have Reached 20% or More of Their Capital” stipulates that they must disclose in an independent declaration when their accumulated losses reach 20% or more and less than 35% of their capital, The announcement must include the amount of accumulated losses, their percentage of the capital, the main reasons that led to these losses, and the measures that the company will take regarding them.Whereas the same article stipulates that if the disclosure required in accordance with this paragraph coincides with the announcement of the initial or annual financial results, the company is exempted from disclosure in a separate announcement if it includes it in the announcement of the initial or annual financial results, and since the company included in its announcement all regulatory requirements. The company is exempt from publishing an independent announcement about the amount of accumulated losses.The main reasons that led to these accumulated losses reaching 123.67 million riyals are due to recording goodwill impairment losses of approximately 35 million riyals and an increase in financing costs of approximately 61 million riyals at the end of the fiscal year 2023, in addition to the results of the first quarter of the year 2024.The company is working on a number of projects to reduce these losses, including:- Restructuring the printing sector.- Study the feasibility of selling some assets and using the proceeds to repay loans.- Entering new markets in the packaging sector. |
