REASONS OF ANNUAL FINANCIAL RESULTS
The growth of net income of the year has been driven by 17.4 % increase in Operating Income. Achieved by:1- 26% increase in sales through strong LFL growth in KSA, especially in the fourth quarter due to the grant of extra 2 months salary from the Custodian of the Two Holy Mosques, growth in trading stores by 354 store and the acquisitions2- Gross margin improved by 0.4%3- The net income has been adversely effected by a reduction in the total of other income and share of income in associates by SAR 57.5m and the increase in finance charges of SAR 50m4- Taxes are lower for the total year by SAR 22.7m mainly due to the recognition of deferred tax in foreign operations.
RECLASSIFICATIONS IN ANNUAL FINANCIAL RESULTS
Certain figure for the prior period have been reclassified to conform with presentation in the current period
OTHER NOTES
* A 26% increase in sales for the full year ended March 2015, SAR 6,898m compared to SAR 5,482m in the previous year * The company has added 354 stores, of which 221 were opened in Saudi, with a total space 104,588 sqm.* The company operation in Saudi has achieved 18% sales growth and 23% growth in operating income.* The company operation in CIS & MENA has achieved a 9% sales growth and 22% increase in operating profit* The company operation in USA has achieved SAR 88m sales and a net loss of SAR 61m* The company subsidiary Blanco achieved sales of SAR 628m and net loss of SAR 32m* Earnings per share for previous period been adjusted in line to the recent increase in the company capital from 105 to 210 million shares on 14/07/2014