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SACO’s profits rise 53% in Q2-20; dividends approved

SACO’s profits rise 53% in Q2-20; dividends approved
SACO's revenue hiked by 13.3% annually in Q2
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Riyadh – Mubasher: The Saudi Company for Hardware (SACO) gained net profits worth SAR 33.14 million during the second quarter (Q2) ended on 30 June 2020, compared to SAR 21.69 million in the same period last year, posting a 52.78% surge.

The company’s revenue saw a 13.29% annual growth, reaching SAR 389.53 million by the end of June 2020, according to a bourse filing on Sunday.

The rise in profits was backed by higher sales, owed to the newly-applied value-added tax (VAT), which tripled to 15% from 5%, a move that led to a rise in demand for the company’s products before the decision was enacted. Moreover, SACO saw a decrease in selling and marketing expenses.

In a separate statement, the company said it approved paying cash dividends of SAR 18 million, equivalent to SAR 0.5 per share or 5% of the share’s par value, to shareholders for the first half (H1) of 2020.

Eligibility of dividends will be to shareholders on 16 August 2020, as per the registered shareholders in the register of the Securities Depository Center Company (Edaa) at the end of the second trading day following the due date.

The distribution is set to take place on 30 August, the statement noted.