SIDC says coronavirus measures weighed on operations in Q2 2020, sales down 21%

Saudi Industrial Development Co. (SIDC) said that the Kingdom's precautionary measures to curb COVID-19 outbreak directly weighed on its operations and subsidiaries in Q2 2020.

The company's sales revenue dropped by nearly 21% year-on-year (YoY) in Q2 2020, due to the partial or the full lockdown, as per the preliminary consolidated financial statements for H1 2020, the company said in a bourse filing. Similarly, the production capacity and inventory levels also went down, the statement added.

In an attempt to mitigate the negative impact of these measures, SIDC boosted its online marketing platform, Sleep High, in addition to capitalizing on the Kingdom's support initiatives. This, in turn, cut the firm's operating expenses and enhanced its liquidity.

The company, along its subsidiaries, is taking the necessary measures to survive the crisis, given that there is no certain timeframe for the pandemic outbreak.

Updates, and the relevant financial impact, if any, will be revealed in due course.

In April, SIDC said that the Kingdom's precautionary measures to curb COVID-19 outbreak may weigh on its operations and subsidiaries, Argaam reported.