Zamil Industrial Investment Company Announces Its Annual Consolidated Financial Results for the Year Ended on 31 December 2020

Sales/Revenue 3,382,962 4,038,583 -16.2%
Gross Profit (Loss) 463,112 586,846 -21.1%
Profit (Loss) Operational (60,754) (27,265) 122.8%
Net Profit (Loss) after Zakat and Tax (159,873) (138,809) 15.2%
Total Comprehensive Income (145,298) (136,619) 6.4%
Total Shareholders' Equity (after deducting minority equity) 1,133,469 1,278,767 -11.4%
Profit (Loss) per Share (2.66) (2.31)

All figures are in thousands of Saudi Riyals

Reasons for increase (decrease) in net profit for current year compared to last year Net loss increase for the year was due to:
1) Impairment in certain capital assets and goodwill in the amount of SAR 43.2 million.
2) Increase in the provisions for expected credit loss of financial assets by SAR 24.2 million.
3) Reduction in sales across all sectors.
4) Lower operating margin in the Steel and Insulation sectors.

Despite the aforementioned reasons, the company succeeded in achieving the following during an exceptional year by all standards:
1) Continued diligent efforts on cost-cutting and control of expenses resulted in a savings of SAR 220 million in operating expenses in 2020.
2) Decrease in financial charges by SAR 39 million.
3) Improved operating margin in the AC Sector.
4) Higher profits from associated companies and other income.
External auditors' opinion The external auditors reviewed the financial statements and issued an unmodified report.
Reclassifications in annual financial results Comparative figures have been reclassified to conform with the presentation in the current year.
Additional information 1) Net profit for the 4th Quarter 2020 before impairment is SAR 8.9 million. Adjusting for the impairment, the declared loss is SAR 34.2 million.
2) Net loss for the year 2020 would have stood at SAR 116.7 million without impairment of SAR 43.2 million.