SACO’s losses shrink to SAR 69M in 2023, Q4 at SAR 24.3M

SACO’s losses shrink to SAR 69M in 2023, Q4 at SAR 24.3M

07/03/2024 Argaam Exclusive

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Saudi Company for Hardware (SACO) narrowed its losses to SAR 69 million in 2023 from SAR 142.5 million in 2022.



Financials (M)

Item 2022 2023 Change‬
Revenues 1,136.54 930.12 (18.2 %)
Gross Income 67.62 59.12 (12.6 %)
Operating Income (107.75) (93.48) 13.2 %
Net Income (142.50) (68.97) 51.6 %
Average Shares 36.00 36.00 -
EPS (Riyals) (3.96) (1.92) 51.6 %

This was attributed to a rise of SAR 36.5 million in overall profit resulting from an improvement in commercial items and operational efficiency, in addition to a decrease of SAR 21.6 million in impairment loss on non-financial assets.

 

The drop in administrative and general expenses, selling and marketing expenses, financing charges, and Zakat charges also contributed to cutting losses.

 

This was despite lower sales on retail stagnation in general, delayed arrival of new items and products, and selling a large portion of old inventory at clearance prices.

 

SACO’s net losses shrank by 68.5% to SAR 24.32 million in the fourth quarter of 2023 from SAR 77.21 million in Q4 2022.

 

Sequentially, SACO widened losses by 99.4% from SAR 12.2 million in Q3 2023.



Current Quarter Comparison (M)

Compared With The
Item Q4 2022 Q4 2023 Change‬
Revenues 311.90 238.98 (23.4 %)
Gross Income (23.73) 21.76 191.7 %
Operating Income (68.94) (24.48) 64.5 %
Net Income (77.21) (24.32) 68.5 %
Average Shares 36.00 36.00 -
EPS (Riyals) (2.14) (0.68) 68.5 %

Shareholders' equity, no minority interest, amounted to SAR 343.75 million in 2023, compared to SAR 413.77 million in 2022.

 

The accumulated losses stood at SAR 40.87 million, representing 11.35% of the company’s capital.

 

Total comprehensive losses for the current period amounted to SAR 69.51 million, compared to SAR 142.42 million for the same period of the previous year.



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2014 228.78 (3.0 %) 55.47 7.8 % 25.64 17.0 % 0.71
Q2 2014 293.71 17.5 % 74.84 29.0 % 37.67 56.4 % 1.05
Q3 2014 248.61 0.3 % 55.97 11.5 % 16.61 (28.7 %) 0.46
Q4 2014 313.76 38.0 % 65.22 10.4 % 30.10 (10.0 %) 0.84
Q1 2015 309.45 35.3 % 66.55 20.0 % 33.83 32.0 % 0.94
Q2 2015 349.36 18.9 % 73.02 (2.4 %) 35.87 (4.8 %) 1.00
Q3 2015 265.36 6.7 % 51.73 (7.6 %) 18.50 11.4 % 0.51
Q4 2015 352.74 12.4 % 68.22 4.6 % 37.91 26.0 % 1.05
Q1 2016 303.21 (2.0 %) 60.75 (8.7 %) 28.72 (15.1 %) 0.80
Q2 2016 351.49 0.6 % 71.59 (2.0 %) 37.05 3.3 % 1.03
Q3 2016 284.97 7.4 % 52.50 1.5 % 21.06 13.9 % 0.59
Q4 2016 384.42 9.0 % 75.76 11.1 % 42.14 11.2 % 1.17
Q1 2017 326.29 7.6 % 62.01 2.1 % 30.76 7.1 % 0.85
Q2 2017 376.33 7.1 % 76.65 7.1 % 40.36 8.9 % 1.12
Q3 2017 322.91 13.3 % 61.14 16.5 % 22.79 8.2 % 0.63
Q4 2017 429.85 11.8 % 84.88 12.0 % 40.99 (2.7 %) 1.14
Q1 2018 321.67 (1.4 %) 53.81 (13.2 %) 14.59 (52.6 %) 0.41
Q2 2018 343.03 (8.8 %) 54.94 (28.3 %) 20.38 (49.5 %) 0.57
Q3 2018 340.17 5.3 % 64.44 5.4 % 24.43 7.2 % 0.68
Q4 2018 385.61 (10.3 %) 76.72 (9.6 %) 38.48 (6.1 %) 1.07
Q1 2019 370.24 15.1 % 63.85 18.6 % 19.24 31.9 % 0.53
Q2 2019 343.83 0.2 % 64.84 18.0 % 21.69 6.4 % 0.60
Q3 2019 351.61 3.4 % 67.13 4.2 % 14.65 (40.0 %) 0.41
Q4 2019 392.08 1.7 % 85.84 11.9 % 6.06 (84.3 %) 0.17
Q1 2020 358.04 (3.3 %) 62.40 (2.3 %) 11.72 (39.1 %) 0.33
Q2 2020 389.53 13.3 % 85.95 32.6 % 33.14 52.8 % 0.92
Q3 2020 332.14 (5.5 %) 67.24 0.2 % 16.48 12.5 % 0.46
Q4 2020 402.05 2.5 % 80.84 (5.8 %) 24.19 299.2 % 0.67
Q1 2021 337.63 (5.7 %) 68.26 9.4 % 15.63 33.4 % 0.43
Q2 2021 323.66 (16.9 %) 62.81 (26.9 %) 14.44 (56.4 %) 0.40
Q3 2021 295.83 (10.9 %) 38.48 (42.8 %) (13.88) (184.2 %) (0.39)
Q4 2021 315.38 (21.6 %) 23.19 (71.3 %) (44.69) (284.7 %) (1.24)
Q1 2022 319.51 (5.4 %) 56.06 (17.9 %) 1.11 (92.9 %) 0.03
Q2 2022 251.00 (22.5 %) 31.59 (49.7 %) (20.53) (242.1 %) (0.57)
Q3 2022 254.13 (14.1 %) 3.70 (90.4 %) (45.87) (230.6 %) (1.27)
Q4 2022 311.90 (1.1 %) (23.73) (202.3 %) (77.21) (72.8 %) (2.14)
Q1 2023 240.27 (24.8 %) 27.86 (50.3 %) (16.52) (1592.4 %) (0.46)
Q2 2023 231.43 (7.8 %) 27.70 (12.3 %) (15.94) 22.4 % (0.44)
Q3 2023 219.44 (13.6 %) (18.21) (592.3 %) (12.20) 73.4 % (0.34)
Q4 2023 238.98 (23.4 %) 21.76 191.7 % (24.32) 68.5 % (0.68)
2023 930.12 (18.2 %) 59.12 (12.6 %) (68.97) 51.6 % (1.92)

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2014 23.35 % 13.76 % 11.16 %
Q2 2014 24.01 % 14.60 % 12.03 %
Q3 2014 24.57 % 14.26 % 11.35 %
Q4 2014 23.18 % 13.32 % 10.11 %
Q1 2015 22.53 % 13.19 % 10.12 %
Q2 2015 21.35 % 12.71 % 9.51 %
Q3 2015 20.72 % 12.77 % 9.53 %
Q4 2015 20.32 % 12.69 % 9.52 %
Q1 2016 19.97 % 12.41 % 9.17 %
Q2 2016 19.82 % 12.49 % 9.25 %
Q3 2016 19.58 % 12.51 % 9.30 %
Q4 2016 19.68 % 13.01 % 9.74 %
Q1 2017 19.44 % 12.97 % 9.72 %
Q2 2017 19.45 % 13.13 % 9.79 %
Q3 2017 19.54 % 13.17 % 9.65 %
Q4 2017 19.56 % 12.92 % 9.27 %
Q1 2018 19.06 % 12.03 % 8.18 %
Q2 2018 17.97 % 11.04 % 6.97 %
Q3 2018 17.99 % 11.02 % 7.00 %
Q4 2018 17.97 % 11.17 % 7.04 %
Q1 2019 18.06 % 12.83 % 7.12 %
Q2 2019 18.74 % 14.70 % 7.21 %
Q3 2019 18.78 % 15.66 % 6.48 %
Q4 2019 19.32 % 15.39 % 4.23 %
Q1 2020 19.38 % 15.56 % 3.74 %
Q2 2020 20.21 % 16.31 % 4.40 %
Q3 2020 20.48 % 16.87 % 4.58 %
Q4 2020 20.00 % 18.10 % 6.24 %
Q1 2021 20.69 % 18.26 % 6.59 %
Q2 2021 20.00 % 17.10 % 5.57 %
Q3 2021 18.42 % 15.09 % 3.48 %
Q4 2021 15.15 % 10.20 % (2.24 %)
Q1 2022 14.39 % 9.19 % (3.43 %)
Q2 2022 12.64 % 6.75 % (6.60 %)
Q3 2022 10.05 % 4.07 % (9.65 %)
Q4 2022 5.95 % 1.04 % (12.54 %)
Q1 2023 3.73 % (1.02 %) (15.69 %)
Q2 2023 3.42 % (0.78 %) (15.71 %)
Q3 2023 1.36 % (2.63 %) (17.31 %)
Q4 2023 6.36 % 1.49 % (13.11 %)
2023 6.36 % 1.49 % (13.11 %)


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2014 36.00 2.96 2.96 8.17
Q2 2014 36.00 3.33 3.33 9.21
Q3 2014 36.00 3.15 3.15 9.67
Q4 2014 36.00 3.06 3.05 10.51
Q1 2015 36.00 3.28 3.28 11.45
Q2 2015 36.00 3.23 3.23 12.45
Q3 2015 36.00 3.29 3.28 12.96
Q4 2015 36.00 3.50 3.38 12.68
Q1 2016 36.00 3.36 3.24 13.29
Q2 2016 36.00 3.39 3.27 13.32
Q3 2016 36.00 3.47 3.34 13.90
Q4 2016 36.00 3.58 3.58 14.07
Q1 2017 36.00 3.64 3.64 14.93
Q2 2017 36.00 3.73 3.73 16.05
Q3 2017 36.00 3.78 3.78 15.51
Q4 2017 36.00 3.75 3.75 16.65
Q1 2018 36.00 3.30 3.30 15.99
Q2 2018 36.00 2.74 2.74 16.55
Q3 2018 36.00 2.79 2.79 16.57
Q4 2018 36.00 2.72 2.72 17.63
Q1 2019 36.00 2.85 2.85 15.85
Q2 2019 36.00 2.88 2.88 15.45
Q3 2019 36.00 2.61 2.61 14.86
Q4 2019 36.00 1.71 1.71 15.02
Q1 2020 36.00 1.50 1.50 15.38
Q2 2020 36.00 1.82 1.82 16.30
Q3 2020 36.00 1.87 1.87 16.26
Q4 2020 36.00 2.38 2.57 16.95
Q1 2021 36.00 2.48 2.68 16.65
Q2 2021 36.00 1.97 2.16 17.04
Q3 2021 36.00 1.12 1.31 16.66
Q4 2021 36.00 (0.79) (0.79) 15.45
Q1 2022 36.00 (1.19) (1.19) 15.48
Q2 2022 36.00 (2.17) (2.17) 14.91
Q3 2022 36.00 (3.06) (3.06) 13.60
Q4 2022 36.00 (3.96) (3.96) 11.49
Q1 2023 36.00 (4.45) (4.61) 11.03
Q2 2023 36.00 (4.32) (4.53) 10.59
Q3 2023 36.00 (3.38) (4.82) 10.25
Q4 2023 36.00 (1.92) (3.39) 9.55

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2014 - - -
Q2 2014 - - -
Q3 2014 - - -
Q4 2014 - - -
Q1 2015 - - -
Q2 2015 27.52 27.59 7.15
Q3 2015 20.09 20.14 5.09
Q4 2015 18.94 19.64 5.23
Q1 2016 17.03 17.69 4.31
Q2 2016 17.42 18.08 4.44
Q3 2016 11.62 12.06 2.90
Q4 2016 15.89 15.89 4.04
Q1 2017 16.53 16.53 4.03
Q2 2017 18.94 18.94 4.40
Q3 2017 19.09 19.09 4.65
Q4 2017 19.48 19.48 4.38
Q1 2018 26.67 26.67 5.50
Q2 2018 27.99 27.99 4.64
Q3 2018 18.62 18.62 3.13
Q4 2018 24.35 24.35 3.75
Q1 2019 25.49 25.49 4.58
Q2 2019 23.57 23.57 4.40
Q3 2019 24.30 24.30 4.27
Q4 2019 30.43 30.43 3.47
Q1 2020 25.21 25.21 2.46
Q2 2020 24.32 24.32 2.72
Q3 2020 27.45 27.45 3.16
Q4 2020 24.50 22.66 3.43
Q1 2021 23.95 22.23 3.57
Q2 2021 37.86 34.49 4.37
Q3 2021 56.33 48.09 3.79
Q4 2021 NEG NEG 3.16
Q1 2022 NEG NEG 2.85
Q2 2022 NEG NEG 2.38
Q3 2022 NEG NEG 2.48
Q4 2022 NEG NEG 2.37
Q1 2023 NEG NEG 2.63
Q2 2023 NEG NEG 3.38
Q3 2023 NEG NEG 3.02
Q4 2023 NEG NEG 4.05

Business Segments (Million)

Compared With The
Period Sales and Services Logistics services Retail sector Wholesale sector
Q1 2014 - - 226.13 2.65
Q2 2014 - - 289.37 4.34
Q3 2014 - - 244.04 4.57
Q4 2014 - - 309.31 4.44
Q1 2015 - - 305.27 4.18
Q2 2015 - - 345.35 4.01
Q3 2015 - - 261.48 3.89
Q4 2015 - - 349.28 3.46
Q1 2016 303.21 - - -
Q2 2016 351.49 - - -
Q3 2016 284.97 - - -
Q4 2016 382.52 - - -
Q1 2017 323.49 2.79 - -
Q2 2017 373.84 2.49 - -
Q3 2017 320.88 2.60 - -
Q4 2017 427.08 2.77 - -
Q1 2018 317.69 3.98 - -
Q2 2018 341.65 1.37 - -
Q3 2018 337.70 2.47 - -
Q4 2018 382.79 2.82 - -
Q1 2019 367.49 2.75 - -
Q2 2019 342.52 1.31 - -
Q3 2019 348.74 2.87 - -
Q4 2019 388.88 3.19 - -
Q1 2020 351.44 6.60 - -
Q3 2020 328.53 3.61 - -
Q4 2020 395.09 6.96 - -
Q1 2021 331.90 4.49 - -
Q2 2021 320.94 3.96 - -
Q3 2021 285.71 10.12 - -
Q4 2021 310.81 8.18 - -
Q1 2022 307.54 11.97 - -
Q2 2022 243.92 7.08 - -
Q3 2022 249.23 4.90 - -
Q4 2022 307.62 4.28 - -
Q1 2023 235.76 4.51 - -
Q2 2023 227.01 4.42 - -
Q3 2023 213.94 5.51 - -
Q4 2023 232.52 6.46 - -

Analysts Estimates (Million)

Item Q4 2023 (e) Q4 2023 (a) Change‬
Average (6.40) (24.32) (279.9 %)

Estimates vs Actual (Million)

Item Q4 2023 (e) Q4 2023 (a) Change
AlJazira Capital (6.40) (24.32) (279.9) %

Current
Market Cap (M Riyal) 1,251.00
Enterprise Value (EV) (M) 1,297.79
Shares Outstanding ((M)) 36.00
EPS ( Riyal) (TTM) (1.58)
Book Value (BV) ( Riyal) 9.31
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) Neg
P/E (TTM) NEG
Price/book 3.73
Return on Average Assets (%) (TTM) (4.58 )
Return on Average Equity (%) (TTM) (15.57 )

Share Price

Saudi Company for Hardware (SACO)


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