SACO took ‘measures’ to reduce Q2 expenses: CEO

Saudi Company for Hardware (SACO) has taken measures to reduce general and administrative (G&A) expenses in second quarter 2018, and is continuing to maintain last year’s expense levels, chief executive Sameer Al-Hamidi told Argaam.

“Although finance charges increased for the company due to a higher Saudi Arabian Interbank Offered Rate (SAIBOR), we were able to settle SAR 43 million worth of loans in H1 2018 because we have a strong cash flow,” Al-Hamidi said.

The company’s overall expenses and financial charges edged up by only slightly by nearly 2 percent quarter-on-quarter (QoQ) in Q2 2018, he mentioned. However, they increased 33.38 percent in Q1 on higher salaries for employees and utility services.

Meanwhile, the firm has already added technology departments at five of its stores and will install additional departments at five other stations before the end of 2018.  The departments are set to be at all SACO stores by the end of 2019.

“Technology sales are a key segment for the company, as they will attract a new customer segment, increase clientele and boost sales,” Al-Hamidi added.

SACO’s net profit dropped 51 percent year-on-year (YoY) in H1 2018 to SAR 35 million, compared to SAR 71.1 million a year earlier, according to data compiled by Argaam.