TADCO trims net losses to SAR 11.6 mln in H1 2020

Tabuk Agricultural Development Co. (TADCO) narrowed its net losses after Zakat and tax by 86.8% to SAR 11.6 million for the first half of 2020, compared to SAR 87.8 million a year earlier.

The decline in losses was attributed to higher sales, lower cost of sales and a decrease in inventory write-down and crops impairment in addition to lower selling and distribution expenses. TADCO allocated zero loan guarantee provisions for an associate and an affiliate.

The company also cut net losses after Zakat and tax to SAR 6.2 million in Q2 2020, from SAR 62.7 million in prior-year period, driven by higher sales, lower cost of sales and a decrease in inventory write-down and crops impairment in addition to lower selling and distribution expenses.

The company also reported a rise in net other income and lower finance costs.

When compared to the previous quarter, TADCO widened net losses by 3.8% on higher losses from inventory write-downs, and increased selling, distribution, general and administrative expenses. TADCO reported higher finance costs and Zakat expenses, due to the consolidation of subsidiaries’ financial results starting Q2 2020.