4 reasons behind Ezz Al-Dekheila’s losses of more than one billion pounds in 9 months .. Get to know them

Al-Ezz Al-Dekheila Company announced that it incurred a net accumulated losses attributable to shareholders of 1.238 billion pounds in the first nine months of 2019, compared to a net profit attributable to shareholders amounting to 1.732 billion pounds in the first nine months of 2018, and on a quarterly basis, the company recorded a net consolidated loss Attributable to shareholders of 668.56 million pounds during the third quarter 019, compared to a net profit attributable to shareholders of 420.78 million pounds in the third quarter 2018, according to direct, the losses are due to 4 reasons, namely:

1- Increasing the cost of sold goods by 8% to record 29.273 billion pounds in the first nine months of 2019 compared to 27.068 billion pounds in the first nine months of 2018, in conjunction with achieving a decrease of 4% in sales revenue to reach 29.750 billion pounds in the first nine months 2019 compared to 30.963 Billion pounds in the first nine months of 2018, as a result of which the overall profit of the company decreased by 88% to record 477.38 million pounds in the first nine months of 2019 compared to 3.895 billion pounds in the first nine months 2018, which led to a sharp decline in the gross profit margin to 2% in The first nine months of 2019 compared to 13% in the same period in 2018.

2- An increase of 75.5% in selling and distribution expenses to reach 345.156 million pounds in the first nine months of 2019 compared to 196.633 million pounds in the first nine months of 2018.

3- An increase of 8 times in other operating expenses, to record 245.92 million pounds in the first nine months of 2019 compared to 29.456 million pounds in the first nine months of 2018.

4- An increase of 34% in net interest expenses to record 1.700 billion pounds in the first nine months of 2019 compared to 1.272 billion pounds in the first nine months of 2018.

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