Zamil Industrial Investment Co. announces its Interim Financial results for the Period Ending on 2025-06-30 ( Six Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 1,458,654 | 1,335,278 | 9.239 | 1,520,038 | -4.038 |
| Gross Profit (Loss) | 268,051 | 213,243 | 25.702 | 265,967 | 0.783 |
| Operational Profit (Loss) | 66,358 | 48,826 | 35.907 | 73,163 | -9.301 |
| Net profit (Loss) | 25,278 | 6,098 | 314.529 | 23,717 | 6.581 |
| Total Comprehensive Income | 26,296 | 5,220 | 403.754 | 24,155 | 8.863 |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 2,978,692 | 2,639,697 | 12.842 |
| Gross Profit (Loss) | 534,018 | 412,696 | 29.397 |
| Operational Profit (Loss) | 139,521 | 72,612 | 92.145 |
| Net profit (Loss) | 48,995 | 11,525 | 325.119 |
| Total Comprehensive Income | 50,451 | -10,239 | - |
| Total Shareholders Equity (after Deducting Minority Equity) | 500,880 | 441,564 | 13.433 |
| Profit (Loss) per Share | 0.82 | 0.19 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | -31,247 | 5.2 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | Consolidated Sales during the period increased by 9.2% due to sales growth in the AC sector by 16%, Steel sector by 8%, and Insulation sector by 89%. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | Net Profit increased due to:
1. Higher Sales resulted in an increase in Gross Profit by 25.7%. 2. Higher Operating Income in the AC, Steel, and Insulation sectors. 3. Higher Share in Results from Associates and Joint Ventures by SAR 1.5 million. 4. Lower Financial Charges by SAR 4.7 million. 5. Lower Zakat and Income Tax by SAR 6.9 million. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | Consolidated Sales during the period dropped by 4% mainly due to sales reduction in the Construction sector by 20%. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | Despite Operating Income dropping by SAR 6.8 million, Net Profit increased due to:
1. Higher Share in Results from Associates and Joint Ventures by SAR 0.6 million. 2. Lower Financial Charges by SAR 2.2 million. 3. Lower Zakat and Income Tax by SAR 12.0 million. |
| The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is | Consolidated Sales during the period increased by 12.8% due to sales growth across all sectors. The AC sector grew by 18%, Steel sector grew by 8%, Construction sector grew by 6%, and Insulation sector grew by 75%. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | Net Profit increased due to:
1. Higher Sales across all sectors resulted in an increase in Gross Profit by 29.4%. 2. Higher Operating Income in the AC, Steel, and Insulation sectors. 3. Higher Share in Results from Associates and Joint Ventures by SAR 3.4 million. 4. Lower Financial Charges by SAR 9.9 million. 5. Lower Zakat and Income Tax by SAR 1.8 million. |
| 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 | Comparative figures have been reclassified to conform with the presentation in the current period. |
| Additional Information | It is worth noting that on 19 December 2024, Gulf Insulation Group ("GIG"), a subsidiary of the Parent Company with 51% shareholding, signed a share purchase agreement (SPA) with the foreign shareholder of Arabian Fiberglass Insulation Company Limited ("AFICO") to acquire the remaining 49% shareholding in AFICO for a consideration amounting SR 123.8 million, subject to securing the approval of the General Authority for Competition in the Kingdom of Saudi Arabia (GAC) as well as satisfying other conditions as per the SPA. During March 2025, GIG and the foreign shareholder secured a waiver letter from GAC to proceed with the deal and satisfied the other conditions stated in the SPA and therefore GIG recognized the acquisition of foreign shareholder’s share in AFICO in March 2025 which caused non-controlling interests and retained earnings at 31 March 2025 to decrease by SR 97.6 million and SR 26.2 million, respectively. This transaction was also disclosed as a subsequent event in the financial statements for the year ended 31 December 2024.
During the preparation of the interim financial statements for the six-month period ended 30 June 2025, the company re-examined the SPA and concluded that there was an unconditional obligation to deliver cash to the foreign shareholder of AFICO subject to satisfying conditions that are not within the control of GIG for the year ended 31 December 2024. Consequently, a financial liability should have been recorded at the date of the SPA, i.e. 19 December 2024 for the fixed consideration to be paid and non-controlling interest should have been derecognized, rather than waiting for the conditions of the SPA to be satisfied, i.e. 18 March 2025
Accordingly, the company restated the comparative figures as at 31 December 2024. The restatement impacted on the following accounts: - Accruals and Other Payables at 31 December 2024 increased by SR 123.8 million rather than the similar increase which was recognized in March 2025. - Non-controlling interests at 31 December 2024 decreased by SR 95.7 million rather than the decrease of SR 97.6 million which was recognized in March 2025. - Retained earnings at 31 December 2024 decreased by SR 28.1 million rather than the decrease of SR 26.2 million which was recognized in March 2025.
The restatement did not have an impact on the profit or cash flows for the year ended 31 December 2024. The restatement also did not have an impact on the profit for the three-month period ended 31 March 2025 but have caused profit attributable to the shareholders of the Company to increase by SR 1.9 million.
The restatement did not have an impact on the condensed consolidated statement of profit or loss and comprehensive income for the three-month and six-month periods ended 30 June 2024. There was also no impact on the condensed consolidated statement of cash flows for the six-month period ended 30 June 2024. |
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