SACO records SR28.5 mln loss in 2021

Saudi Company for Hardware (SACO) has turned to net loss of SR 28.5 million after zakat and tax in 2021 from net profit of SR 85.5 million the year earlier.

The company’s operational profit dropped 90% to SR 14 million from SR 140 million in 2020, while gross profit declined 35% to R 193 million from SR 296 million the year before.

Based on its financial result statement published on Tadawul, SACO recorded loss per share of SR 0.79 from profit per share at SR 2.38 in 2020.

Turning to losses was due to

– lower sales by 14% during 2021 compared to the previous year which was partially associated with delay in receiving imported goods and increase in the freight and shipping cost due to supply chain crisis besides global container and shipping shortages.

– Impairment loss on non-financial assets which are not recurring in nature amounting to SR 14.8 million.

– Higher inventory provision exceptionally last year by SR 28.9million, resulting from revising the accounting assumptions & estimates of the inventory provision policy.

– Higher S&M expenses during the year by SR 13.5 million compared with the year before.

– Higher G&A expenses by SR 16.4 million.