SACO’s Q1 2022 net profit sinks 93% to SAR 1.1 mln

Saudi Company for Hardware (SACO) reported a slump of 93% in Q1 2022 net profit after Zakat and tax to SAR 1.1 million, compared to SAR 15.6 million a year earlier.

The profit fall was attributed to a 5% year-on-year (YoY) decline in sales and higher freight and shipping costs. The company also cited an increase in the general and administrative expenses, related to the development of its distribution centers and supply chain process.

SACO turned profitable from a net loss of SAR 44.69 million in Q4 2021, backed by an additional inventory provision, which was exceptionally recorded in the previous quarter, a drop in selling and marketing expenses, as well as general and administrative expenses. 

Total shareholders’ equity, after minority interest, fell to SAR 557.29 million as of March 31, 2022, from SAR 599.26 million a year earlier.

View more financial results