Zamil Industrial announces its consolidated interim financial results for nine months ended 30 September 2012

Net profits for the third quarter of 2012 were SR46.8m ($12.5m), compared to SR33.6m ($9m) during the same period in 2011, representing 39.4% increase, and compared to SR55.8m ($14.9m) posted in the previous quarter (Q2) - a drop of 16.1%.

Gross profit for the third quarter of 2012 was SR273.2m ($72.8m), compared to gross profit of SR256.8m ($68.5m) for the same period in 2011, an increase of 6.4%.

Operating profit for the third quarter of 2012 was SR83.2m ($22.2m), compared to gross profit of SR69.8m ($18.6m) in the same period in 2011, an increase of 19.2%.

During the nine months ending 30 September 2012, net profits were SR140.1m ($37.4m) compared to SR118.2m ($31.5m), representing an increase of 18.5% over the same period in 2011.

Earnings Per Share increased to SR2.33 ($0.62) from SR1.97 ($0.53) in the same period in 2011.

Gross profit for the first nine months was SR797.3m ($212.6m) compared to SR761.4m ($203m) for the same period in 2011, an increase of 4.7%.

Operating profits for the first nine months were SR250.8m ($66.9m) compared with SR215.7m ($57.5m) for the same period in 2011, an increase of 16.3%.

The reason behind the growth in the third quarter compared to the same period last year was due to increase in sales by 9.8%.

The reason behind the growth in the nine months compared to the same period last year was due to increase in sales by 7.8%. On the other hand, financial charges increased because of the higher cost of borrowing, in addition to the drop in Share of Associates Income due to the slowdown in business activity in India and devaluation of Indian Rupee.

The reason for decline in the third quarter compared to the second quarter of this year was due to decrease in sales by 4.7% since the third quarter coincides with the Holy month of Ramadan and summer vacation, which normally witnesses slower releasing to production and shipment at the request of customers.

Certain figures for the third quarter of 2011 have been reclassified to conform with the presentation in the current period.