Riyadh – Mubasher: The Saudi Company for Hardware (SACO) registered a net profit after tax and zakat worth SAR 61.63 million during 2019, down by 37% from SAR 97.88 million in 2018.
Sales rose by 4.8% last year to stand at SAR 1.46 billion from SAR 1.39 billion a year earlier, according to a stock exchange statement on Wednesday.
The drop in profit is attributed to a rise in sales, marketing, administrative, and general expenses.
In addition, the company recorded higher finance costs due to the application of the IFRS 16.
During the fourth quarter (Q4), the net earnings shrank by 84.4% to SAR 6 million from SAR 38.48 million in Q4-18.
Moreover, the board of directors recommended not to distribute any dividends to shareholders for the second half (H2) of 2019 in an attempt to support the company’s financial position and cash liquidity over 2020.
The recommendation will be subject to the general assembly’s approval.
It is noteworthy that in the first nine months of 2019, the Tadawul-listed company’s net profit after zakat and tax declined by 6.43% to SAR 55.58 million in the year-ago period.