BASE OF EVERY STRUCTURE
BASE OF EVERY STRUCTURE
Earning Per Share
2020 marked a difficult year for all of mankind. We faced, and are all still dealing with the effects of the new Corona pandemic caused by the Covid-19 virus. The great and unprecedented challenge it poses to all countries of the world, without exception, is a direct result of the unlimited negative repercussions in the global arena, affecting all areas of business and life, from trade to investment, transportation and tourism, which in turn has affected the lifestyle of all of us. We have all been affected in our day-to-day lives, from our work life, to education and social communication in all its forms.
Through its presidency of the G20, the Kingdom of Saudi Arabia has had a pioneering role in mobilizing and coordinating the global effort to support and encourage the production of vaccines, and to ensure their fair distribution throughout the world. In addition to this, the Government also took many urgent and drastic measures to help stimulate the Saudi economy, support the private sector, the health sector and investment in the modern technical infrastructure with the application of the highest level of comprehensive preventive and precautionary measures.
All of us at Bawan, from Members of the Board, to employees working across the Company in all departments, work sites, production and services, have been keen to strictly adhere to all implemented procedures, which have included moving from the conventional office space to remote locations, and utilizing virtual technology across all aspects of work, from training seminars to meetings. We are all extremely grateful and indebted to our Country’s leaders, whose tremendous efforts in preserving the health and safety of every single citizen and resident have prevailed, with the provision of the highest levels of integrated health care for all, and with making available a highly effective vaccination program in record time.
Despite these difficult challenges, I am pleased to confirm through this report that the Company has been able to achieve positive results, with good production and operational rates, whilst rationalizing costs. This has been complimented by the Company preserving its market share and strengthening its investment base and its competitive position as one of the major manufacturing, building, packaging materials and capital goods groups, both domestically and internationally. We have been able to fully benefit from our Group’s accumulated experience spanning over forty years in developing the construction sector and infrastructure and providing specialized construction services, while providing advanced consulting and engineering solutions that meet the highest standards, through the optimal investment of our strengths and the competitive advantages the Group possesses.
Looking forward to the coming year, we seek to further develop our performance, product and service offering in various parts of the Kingdom, as well as strengthening our presence in international markets by providing the products from our electrical and plastic sectors in these markets on a large scale. We are optimistic, and look forward to the demise of the Covid-19 pandemic, the recovery of the global economy, and the return of international trade activity to its previous levels before the Corona pandemic, so that our national economy can continue to look towards new horizons, and so that all humanity, after the suffering of 2020, can collectively progress and prosper around the World.
In conclusion to this unique and eventful year, I would firstly like to take this opportunity to acknowledge the important contributions my fellow Board Members have made, and the support and guidance we have received from our Government, which has significantly reduced the impact Covid-19 made to the country. I would also like to express my sincere gratitude and appreciation for the support and trust our most valued shareholders have shown. Furthermore, it is because of the dedication and professionalism of our management team and all of our employees that we were able to unite and maximize our opportunities in 2020, despite the challenges, which stands us in good stead as we look towards the future, and a return to normal in all aspects of our lives.
As a kingdom of humanity, Saudi Arabia led, through its leadership position in the G20, the international efforts in confronting this pandemic head-on, which were crowned with the success in spearheading the provision of vaccines and the country’s joint efforts with partners to help kickstart the global economy. These efforts are in addition to the preventive and precautionary measures that have been taken to preserve the health of citizens and residents of our generous homeland, whilst protecting our national economy from the complications resulting from this pandemic, as well as giving priority to the preservation of jobs of the citizens to minimize the effects of any negative developments that are beyond their control.
Taking into consideration the position of Bawan as one of the pillars in its sector of our national economy, we have been keen, with the support of our Honorable Chairman and the members of the Board of Directors, to implement an integrated strategic plan to enable the group to adapt to these successive changes and difficult challenges, by adopting an operational system characterized by flexibility and dynamism to ensure continuity. Bawan holds a leading role in our economy, serving several pioneering development projects throughout our beloved country. In addition, we serve the manufacturing, building, packaging materials and capital goods industries, striving to diversify our product line, allowing us to open further markets and developing our renewable resources, with priority given to preparing and developing the future leaders of our Country and preserving the rights and interests of our valued shareholders.
All these efforts have meant a high level of business continuity, always taking into consideration full adherence with preventive and precautionary measures, of which we are extremely proud of our achievements. We pride ourselves in the level of competence and professionalism of the Group’s employees, who have shown with honour that they take ownership, responsibility and are at the level needed to face the challenges of the world head-on, and have proven they have the fighting spirit to beat the Corona pandemic.
By reviewing the main features of the Group’s performance during the year 2020, which are included in detail in this report, we find many positive indicators that highlight the strength in depth of our business. There were significant increases in all key financial metrics, including an 8% increase in revenue for the year. This was complimented by a decrease in financing cost and operational expenses, coupled with an increase in other income, which resulted in an increase year-on-year in net income of 238.6%, reaching a figure of 90.2 million Saudi Riyals.
What makes me proud in my position and with our performance, is that all through the past year, with all its challenges, the group continued to strengthen its strategic partnerships, diversify its operations, and modernize its technical structure to enhance its capabilities and achievements, paving the way for an even brighter future.
And because difficulties and challenges are in fact the fuel of success, we at Bawan will all work as a team to overcome any future obstacles and benefit from them by enhancing our balance of experience and expertise and then convert them into momentum that strengthens our launch towards a bright future, especially with the positive signs of the expected decline in Coronavirus numbers. With this new challenge, and the increasing availability of vaccines across the world, we are grateful to our shareholders for their confidence that we cherish, to our customers for their positivity and support, government agencies for their support that we value, and to all the employees of the group for their dedication and incredible hard work and performance throughout 2020. I sincerely wish everyone nothing but health, safety, good health, prosperity and continued success.
Net profit for 2020 increased from 26.6 million Saudi Riyals to 90.2 million Saudi Riyals by the end of 2020
Earning Per Share 2020
Earning Per Share 2019
We faced the challenge head-on, and won. Despite the disruption to capacity at various points throughout the year, Bawan successfully overcome the difficulties and produced phenomenal results. Revenue increased 8.2%, reaching 2.4 billion Saudi Riyals, with gross profit reaching 336.7 million Saudi Riyals, an increase of 35.1%. Operational profit also increased significantly, with a rise of 133.8% to 123.2 million Saudi Riyals.
Despite the increase in Zakat expenses, loss from discontinued operation and the decrease in the gain on disposal and valuation of investment in financial assets at fair value through profit or loss, we successfully managed to decrease financing costs, operational expenses and increased other revenue streams. As a result, Net Income increased by 238.6% to 90.2 million Saudi Riyals, and Total Comprehensive Income attributable to the owners of the Company was up at 90.3 million Saudi Riyals, an increase of 362.3% year-on-year.
As we look forward to 2021, and with Government investment growing in domestic projects, our aim is to continue to build on the positive results of 2020, and to continue on our path of diversifying our product offerings and continuing to cement and increase our market share, not only in Saudi Arabia, but in all regions in which we operate.
Revenues by business sector
Revenues by country
Bawan’s corporate strategy is well defined, enhancing and complementing the Company’s Core Values. With the rapidly maturing and evolving market in Saudi Arabia, the Company is perfectly poised to execute its strategy to further cement its market-leading position and ensure long-term sustainable growth and success, whilst continually assisting in the realization of Saudi Arabia’s Vision 2030.