Ghida Alsultan for Fast Food Co. announces its Annual Financial results for the period ending on 2025-12-31

1. Gross Profit: Gross profit increased during the year compared to the previous year due to the 15.74% growth in revenue. Additionally, improved operational efficiency and reduced costs of food materials and packaging positively impacted profit margins. The gross profit margin improved to approximately 35.8% compared to 34.4% in the "Restated" previous year.

2. Selling and Distribution Expenses: The increase in selling and distribution expenses is due to branch expansion and increased marketing activities. This also includes a higher share of sales through delivery applications and electronic ordering platforms, along with associated commissions and operational costs. These expenses reached SAR 52,352,560 compared to SAR 41,767,860.

3. General and Administrative Expenses: The increase is attributed to higher wages and salaries, in addition to the company's business expansion and the opening of new branches during the current year, which required further administrative and operational support. These expenses reached SAR 20,258,196 compared to SAR 15,600,216.

Other Items

• Increase in Finance Charges: Finance charges related to lease contract obligations increased to SAR 3.07 million, compared to SAR 2.21 million in the previous year.

• Prior Years' Adjustments: Material accounting adjustments were made to the 2024 comparative figures regarding lease contracts (IFRS 16) and the depreciation of leasehold improvements, impacting both previous and current year profitability.

Accordingly, this accounting error was corrected retrospectively in accordance with International Financial Reporting Standards (IFRS). The comparative figures for 2024 and the beginning of the year were recalculated and restated to ensure that the financial statements present a fair and accurate picture.