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SACO records 39% decline in Q1 profits

SACO records 39% decline in Q1 profits
COVID-19 resulted in decreased sales and less promotional activities
SACO
4008
-0.56% 26.50 -0.15

Riyadh – Mubasher: The Saudi Company for Hardware (SACO) achieved a net profit after zakat and tax of SAR 11.72 million during the first quarter (Q1) of 2020, posting a 39% decline compared with the same period last year.

Revenues decreased by 3.3% year-on-year (YoY) to SAR 358.04 million in Q1-20, compared with SAR 370.24 million for the same period in 2019, as shown by the company’s interim financial results for the three-month period ended 31 March 2020.

The decline in profits was attributed to lower sales and other income, as well as the increase in some expenses and finance costs, according to the company’s statement to the Saudi Stock Exchange (Tadawul) on Sunday.

Closing many stores as part of precautionary measures against the coronavirus (COVID-19) coupled with lower promotional activities, resulted in the decrease in sales during the first quarter of the year.