Bawan Company achieved a net profit growth of 238.6%, as the net profit increased more than 3 times to reach 90.168 million riyals in 2020, compared to 26.6 million riyals in 2019.
According to Arabiya Net, the company said in a statement that the reason for the increase in net profit during the year compared to the previous year is due to the increase in total income affected by higher revenues, profit margin and lower financing costs. Operating expenses and the increase in other income, despite the decrease in the profits of excluding and evaluating the investment in financial assets at fair value through profit or loss, the increase in zakat expenses and the loss of interruption in an operating activity.
The company's revenues during the current year compared to the previous year increased by 8.2% to 2.4 billion riyals, due to the increase in the revenues of the metal, wood and electrical industries sectors mainly affected by the increase in the quantities sold.
The company indicated that provisions were recorded in the amount of 31.2 million riyals during the year to meet the potential risks in collecting some commercial receivables compared to 9.1 million riyals during the previous year.
