The United Wire Factories Company (ASLAK), a producer of metal wires, reported 2014 net profit of SAR 90.3 million, a 25 percent decrease compared to the last year.

A net profit of SAR 12.9 million was reported for Q4-2014 compared to SAR 20.4 million for Q3.

The Company attributed the decline of 2014’s net profit compared to the last year to the decrease of sales along with the decrease of gross profit margin and because the company computed zakat expense for the period from the date of the resignation of the foreign partner at the end of the first half of the year till the date of the financial statements and recorded them as expenses in the income statement as per the Saudi accounting standard of zakat while this expense was recorded as a deduction from the retained earnings during the same period in year 2013. In addition to the increase of selling & distribution expenses because of opening new branches.

The decline of Q4-2014’s net profit compared to the same period last year was attributed to the decrease of sales along with the decrease of gross profit margin and because the company computed zakat expense for the last quarter and recorded it as expense in the income statement ( because of the resignation of the foreign partner at the end of the first half of year 2014 ) as per the Saudi accounting standard of zakat while this expense was recorded as a deduction from the retained earnings during the same period in year 2013.

The decline of Q4 net profit compared to the previous period (Q3-2014) was attributed to the decrease of gross profit margin and because the company computed zakat expense for the last quarter of year 2014 and recorded them as an expense in the income statement ( because of the resignation of the foreign partner at the end of the first half of the year 2014 ) as per the Saudi accounting standard of zakat while this expense was recorded as a deduction from the retained earnings during the previous quarter and because of the increase of cost of goods sold