The company achieved (net loss) during the current period compared to the net profit achieved during the same period of the previous year for the following reasons:
The cost of sales increased by 31.94% due to the increase in the prices of raw materials and the increase in operating costs.
The increase in selling and marketing expenses by 31% due to the increase in sales, and the general and administrative expenses by 57.84% due to the increase in salaries and wages for the administrative cadres that were attracted to implement the company’s expansion plans.
The Zakat provision will increase by 138.99% to increase the capital, and the value of the Zakat provision will gradually decrease as the company progresses in implementing its expansion plans and capital spending.
Despite an increase in sales by 17.09%, a decrease in the provision for credit losses, a decrease in financing costs, and an increase in investment profits and other income.
The basic and diluted share of profit and loss for the current period and the corresponding period of the previous year was calculated by dividing the net profit or loss for each period after zakat attributable to the company’s shareholders by the weighted average number of ordinary shares outstanding at the end of each period, where the weighted average shares for the current period 17,500,000 shares compared to 2,500,000 shares for the same period of the previous year.
