The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is
The company's revenues increased by SAR 56.6 million (26.3%) during the current quarter compared to the same quarter of the previous year.
This is mainly due to increase in the revenues of following subsidiaries during the current quarter compared to the same quarter of the previous year, as follows:
• An increase in the revenues of Protecta Vision Company by SAR 57.7 million compared to the same period last year upon recognizing revenues from the supply of goods to a semi-governmental customer in the amount of SAR 56.8 million after applying the ruling issued in favor of the company by the Commercial Court in Riyadh.
•An increase in the revenues of Girgas Company by SAR 8 million.
• An increase in the revenues of ODLA Co by SAR 3.4 million.
• An increase in the revenues of Commercial sector by SAR 1.9 million.
This increase in revenues from subsidiaries and the Commercial sector was accompanied by a decrease in operating, maintenance, and contracting revenues of SAR 14.8 million as a result of the end of the operating period for some projects during the current quarter compared to the same quarter of the previous year.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is
Net profit increased by SAR 4.4 million (60.1%) at the end of the current quarter compared to the same quarter last year, due to the following:
• Net profits increased as a result of higher revenues from subsidiaries Protecta Vision Company and Girgas Company, as explained above.
• Also, the decrease in costs associated with the subsidiary (Girgas Trading Company) during the second quarter of last year as a result of the completion of the sale to Naqa United Trading Company (a subsidiary of Girgas Trading Company) before the end of the third quarter of 2024.
Despite the increase in sales and marketing expenses based on the increase in subsidiaries sales volume achieved during the current quarter
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is The company's revenues increased by (22.7%) SAR 50.3 million during the current quarter compared to the previous quarter. This is due to increase in the revenues of subsidiaries by SAR (68.7) million during the current quarter compared to the previous quarter, as follows:
• An increase in the revenues of Protecta Vision Company (a subsidiary) by SAR 57.5 million over the same period last year as a result of the company recognizing revenues from the supply of goods to a semi-governmental customer in the amount of SAR 56.8 million after applying the ruling issued in favor of the company by the Commercial Court in Riyadh.
• An increase in the revenues of Girgas Company by SAR 8.6 million.
• An increase in the revenues of other subsidiaries by SAR 2.5 million.
• The increase in subsidiary revenues was accompanied by a decrease in revenues from the operation, maintenance, and contracting sector due to the completion and handing over some projects during the current quarter compared to the previous quarter.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is
Net profit during the current quarter increased by SAR 4.5 million ( 61.4%) compared to same quarter of the previous year, affected by the increase in net profits of Protecta Vision Company (subsidiary) and Girgas Company (subsidiary) due to the increase in revenues as mentioned above, despite the impact of the decrease in net profits in the operation and maintenance sector as a result of the completion some of projects during the first quarter of 2025.
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is
The company's revenues increased by SAR 62.6 million (15%) during the current period
compared to the same period last year.
This is mainly due to an increase in revenues of subsidiaries as follows:
• An increase in the revenues of Protecta Vision Company by SAR 55.2 million over the same period last year as a result of the company's recognition of revenues from the supply of goods to a semi-governmental customer in the amount of SAR 56.8 million after the implementation of the ruling issued in favor of the company by the Commercial Court in Riyadh.
• An increase in the revenues of other subsidiaries by a total of SAR 10.1 million It consists of:
(1) Girgas Company by SAR 6.3 million
(2) Nabd Medical Co by SAR 1.2 million
(3) ODLA Co by SAR 2.6 million.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is
Net profit increased by SAR 3.4 million (21.8%) at the end of the current period compared to the same period last year. This is mainly due to the following:
• The increase in net profit for both Protecta Vision & Girgas Drug Store Co.’s as a result of the increase in revenues, as explained above.
• A decrease in the costs of the subsidiary (Girgas Drug Store Co) by SAR 6.1 million during the current year compared to the same period last year as a result of the completion of the sale of Naqa United Trading Company (a subsidiary of Girgas Drug Store Co) before the end of the third quarter of 2024.
• The increase in net profits of subsidiaries was accompanied by a decrease in net profits in the operation, maintenance, and contracting sector as a result of the completion and delivery of a number of projects.
• Following the increase in collections from customers, loan and bank facilities balances were reduced, which led to a significant decrease 46% in financing costs by SAR 6.4 million in the first half of the current year compared to the same period last year, which played a major role in covering the increase in legal zakat expenses by SAR SR 3.1 million, in addition to an increase in credit loss provisions of SR 1.8 million and a decrease in other income of SR 1.5 million.
It’s worth mentioning that company's increase in revenues by SAR 62.6 million, or 15%, during the current period compared to the same period last year, was accompanied with a decrease 2% in profit margin for the current period compared to the same period last year, due to a decrease in the total profit margin of operating projects.
This was due to the expiration of some projects terms and taking over other new projects, which required the creation of some provisions to cover any potential costs resulting from the handing over or taking over of projects.
Statement of the type of external auditor's report
Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion)
N/A
Reclassification of Comparison Items
N/A
Additional Information
On 25 August 2024, “Girgas Drug Store Trading Co.” (a subsidiary) signed a sale and assignment contract with “Nada Al Hayat Medical Holding Company” to sell all of the shares owned by Girgas in “Naqaa United Pharmaceutical Company”. The sale and transfer of ownership and control took place before 30 September 2024.
In compliance with International Financial Reporting Standard IFRS 5, all account related to the sold company “Naqaa” were excluded from all consolidated financial statements for the periods up to the date of disposal compared to similar periods of the previous year.
Earnings per share from discontinued operations were excluded from earnings per share from continuing operations in both years as shown in the consolidated income statement.Click here to view on Tadawul 
