Al Meera Consumer Goods Company reported QR209mn net profit in 2020, which is a QR22.5mn, or 12%, increase compared to 2019.
Earnings per share improved to QR1.05 over QR0.93 reported in 2019, Al Meera said Tuesday.
The board of directors also proposed a 90% cash dividend on the paid-up capital of QR0.90 per share, totalling QR180mn for 2020, which is subject to shareholders approval during the annual general assembly.
In the first half of 2020, to combat the shortage of supply of essential goods brought about by Covid-19, Al Meera made great efforts to ensure that all its stores have adequate supplies of fast-moving consumer goods (FMCG), groceries, and foodstuff to meet the increased demands of the communities. The unprecedented demand for products across multiple categories led to strong top-line results.
As a result, Al Meera’s operations in 2020 were positively impacted by Covid-19-related activities. The company recorded consolidated sales of QR3.4bn in 2020. Gross profit increased to QR592.1mn, an increase of 14.2% over 2019.
However, rental income during the year was negatively impact by the pandemic.
As part of Al Meera's dedication to the community and in support of local businesses to overcome the economic impact of Covid-19 outbreak in the country, Al Meera provided various incentives, including rent-free concessions up to four months, plus rescheduling of rent payments to assist the retail tenants who had been directly affected by the lockdown.
As a result, rental income for the year decreased by QR9.7mn, to QR65.1mn compared to the same period in 2019.