SACO turns to loss of SAR 28.5 mln in 2021; Q4 loss at SAR 44.7 mln

Saudi Co. for Hardware (SACO) reported a net loss after Zakat and tax of SAR 28.5 million for 2021, from a profit of SAR 85.5 million a year earlier.

The company attributed the losses to lower sales driven by the delay in receiving imported goods and the increase in the freight and shipping costs due to the supply chain crisis and the global container and shipping shortages.

During the period, SACO realized an impairment loss on non-financial assets and booked additional inventory provisions resulting from revising the accounting assumptions & estimates of the inventory provision policy.

In addition, selling and marketing expenses, as well general and administrative costs increased.

The company reported a net loss after Zakat and tax of SAR 44.7 million in Q4 2021, from a net profit of SAR 85.53 million in the same period last year.

On a sequential basis, net loss widened from SAR 13.88 million.

Total shareholders’ equity, after minority interest, fell to SAR 556.2 million as of Dec. 31, 2021, from SAR 610.2 million a year earlier. 

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