Bawan Company achieved a jump in net profits by 178.8%, as the net profit amounted to 43.121 million riyals in the second quarter of 2021, compared to 15.464 million riyals during the same period last year.
According to Arabia Net, the company’s revenues increased during that period by 51% to 788.8 million riyals, compared to 520.9 million riyals during the corresponding period of 2020.
The company attributed the increase in profits to the increase in sales of the metal and wood industries sector affected by the increase in sold quantities and average selling prices, which in turn positively affected profits, and the increase in revenues and profit margins of the electrical industries sector This resulted in improved results compared to the same quarter of the previous year.
It also attributed the increase in profits to the increase in the quantities sold of the products of the plastic industries sector, and the decrease in the cost of financing as a result of repaying part of the loans.
This came despite the increase in operating expenses and zakat affected by the growth of activity and business results, and the decrease in profits from the exclusion and evaluation of investment in financial assets at fair value through profit or loss.
In the first half of this year, the net profit rose to 84.8 million riyals, at a rate of 176.5%, and revenues increased by 41% to 1.65 billion riyals.
Dividend
The company announced the decision of its board of directors to distribute cash dividends to shareholders for the first half of this year.
She said that the total amount to be distributed is 45 million riyals, on 60 million shares, bringing the share of profits to 0.75 riyals, provided that the eligibility is for the shareholders who own the shares on the day Due August 19, 2021.
