| The reason of the increase (decrease) in the sales/ revenues during the current year compared to the last year | The decrease in sales/revenues during the current year compared to the previous year is primarily attributable to a decline in wholesale segment sales, while the retail segment recorded growth driven by the Company’s strategic direction toward strengthening its presence in this segment through expansion in opening new branches. Additionally, sales of the table eggs segment were affected during the year due to the sector’s transition from its operational phase to phases associated with strategic expansions within the sector’s development plans, which had been previously announced to the shareholders. |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | The net loss for the current year compared to the previous year is primarily attributable to non-operating factors represented by the revaluation results of financial assets at fair value through profit or loss, which constitute unrealized losses resulting from changes in the fair value of these assets (the investment portfolio), amounting to approximately SAR (13.7) million, which had a direct impact on the net result for the period. Nevertheless, the Company was able to achieve an operating profit during the period and maintain stability in the gross profit margin, reflecting efficient cost management and the Company’s continued ability to generate returns from its core operations. The year’s results were also affected by operational factors, including the decline in sales and the increase in operating expenses associated with opening new branches as part of the expansion plan in the retail segment, in addition to an increase in the provision for credit losses. The Company confirms its ongoing implementation of its operational and expansion plans in accordance with its approved strategy, while monitoring the impact of these factors on the results of upcoming periods, thereby supporting the enhancement of operational efficiency and improvement of financial performance. |
