SACO receives SAR 8 mln support in Q2 2020 to soften COVID-19 impacts: CEO

Saudi Co. for Hardware (SACO) capitalized on the Saudi government initiatives to minimize the COVID-19 outbreak impacts, receiving SAR 8 million support in Q2 2020, CEO Haytham Al-Hamidi, told Argaam in an exclusive, expecting to secure additional support in Q3, without giving more details.

“The company reported an increase in profit margins, amid lower cost of sales in the second quarter, driven by the governmental support programs to mitigate the coronavirus impact,” Al-Hamidi said, adding that the Kingdom’s initiatives contributed to cutting operating expenses.

The other initiatives adopted by the company also played an important role in reducing operating costs, including the fees of some markets this year, restructuring of the company’s staff, adopting a policy to enhance offers, which all helped improve profit margins and cost efficiency.

SACO’s sales rose 13% in Q2 2020, when compared to the same period last year, thanks to the value-added tax (VAT) hike decision, Al-Hamidi explained, noting that demand increased significantly ahead of the VAT implementation in early July.

The company reported higher online sales in Q2 2020, and is finalizing a new platform covering the delivery and installation services, Al-Hamidi concluded.

SACO reported a net profit after Zakat and tax of SAR 44.86 million for the six months of 2020, a 9.6% year-on-year (YoY) increase compared to SAR 40.9 million in the same period last year, Argaam reported.