Saudi Company for Hardware announces its Interim Financial Results for the Period Ending on 2020-06-30 ( Six Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 389.53 | 343.83 | 13.291 | 358.04 | 8.795 |
| Gross Profit (Loss) | 80.63 | 64.84 | 24.352 | 58.93 | 36.823 |
| Operational Profit (Loss) | 46.59 | 32.88 | 41.697 | 25.46 | 82.992 |
| Net Profit (Loss) after Zakat and Tax | 33.14 | 21.69 | 52.789 | 11.72 | 182.764 |
| Total Comprehensive Income | 33.06 | 21.69 | 52.42 | 12.8 | 158.281 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 747.57 | 714.07 | 4.691 |
| Gross Profit (Loss) | 139.56 | 128.69 | 8.446 |
| Operational Profit (Loss) | 72.05 | 62.74 | 14.839 |
| Net Profit (Loss) after Zakat and Tax | 44.86 | 40.93 | 9.601 |
| Total Comprehensive Income | 45.85 | 40.93 | 12.02 |
| Total Share Holders Equity (after Deducting Minority Equity) | 586.72 | 556.16 | 5.494 |
| Profit (Loss) per Share | 1.25 | 1.14 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to | The increase in net profit for current quarter compared with same quarter of the previous year was due to;
- Increase in sales due to the issuance of new decree increasing the VAT rate from 5% to 15% which resulted in increasing the demand on the company’s products before the implementation of the new VAT rate. - Decrease in the S&M expenses. |
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to | The increase in net profit for the current quarter compared to the previous quarter was due to the following;
- Increased in sales due to increasing the VAT rate from 5% to 15%. - Decrease in the S&M expenses - Decrease in the finance cost |
| Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to | The increase in net profit for current period compared to the similar period of the previous year was mainly due on the increase is sales due to the issuance of new decree increasing the VAT rate and the increase of the showrooms, in addition to the decrease in the S&M expenses. |
| Basis of the External Auditor's Opinion | Unmodified opinion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | None |
| Reclassification of Comparison Items | Comparative period figures have been reclassified to conform with current period classification numbers. |
| Additional Information | Medscan's sales (Subsidiary company ) for the current period amounted to SAR 28.19 million compared to SAR 10.07 million for the same period last year with an increase of 180%. Medscan's net profit for the current period was SAR 3.1 million compared to SAR 2.2 million for the same period last year with an increase of 41%
The government of Saudi Arabia authorized different measures to containment the coronavirus outbreak which includes the imposition of a partial and full-time curfew in some cities of the Kingdom which led to the closure of the company's showrooms partially and completely during the period from 17 March until end of April. This resulted in a detrimental impact on the company’s results where sales decreased by SAR76.4m, a percentage of 28.6%, compared to sales for the same period in the previous year.
The curfew imposed due to Covid-19 was gradually and completely released during May and June, which started reflecting positively on the company's results.
The company is carefully monitoring the developments related to Covid-19 pandemic and in particular the extent of its impact on the retail market, and also implemented all precautionary measures including the social distancing across all its stores, warehouses and head office. The company also implemented the necessary procedures to enable the employees to continue operating on a business as usual basis, including remote working where possible, whilst taking the necessary precautions to safeguard the well-being of its employees in the context of the ongoing pandemic.
The initiatives provided by the government to minimize the impact of the coronavirus outbreak (Covid-19) and in particular the initiative related to SAND, resulted in a decrease in some operating expenses during the second quarter of this year. |
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