Zamil Industrial Investment Company (Zamil Industrial) has announced its interim financial results for the period ending 31 March 2012.

Net profits for the first quarter of 2012 were SAR 37.5 million (USD 10 million), compared to SAR 36.8 million (USD 9.8 million) during the same period in 2011, representing an increase of 2.1 percent, and compared to SAR 36 million (USD 9.6 million) posted in the previous quarter (Q4) a growth of 4.3 percent.

Gross profit for the first quarter of 2012 was SAR 240.6 million (USD 64.2 million), compared to gross profit of SAR 220.8 million (USD 58.9 million) for the same period in 2011, an increase of 9 percent.

Operating profits during the first quarter were SAR 70.8 million (USD 18.9 million) compared to SAR 59.6 million (USD 15.9 million) in the same period in 2011, an increase of 18.7 percent.

Earnings Per Share grew to SAR 0.63 (USD 0.17) from SAR 0.61 (USD 0.16) in the same period in 2011.

The reason behind the improvement in the first quarter compared to the same period last year and that of the fourth quarter of 2011 was due to a 14 percent increase in sales and higher production volumes although local and regional competition continued to affect margins. On the other hand, the drop in Other Income was due to foreign currency exchange gains reflected in the same period in 2011. While the increase in Financial Charges was mainly due to increase in Murabaha financing, whereas the increase in Minority Interests was a consequence of the consolidation of Gulf Insulation Group Company.

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